AbbVie, which is due to be spun off from Abbott Labs (ABT) on Jan 1, is set to this week sell...

AbbVie, which is due to be spun off from Abbott Labs (ABT) on Jan 1, is set to this week sell over $10B in bonds in what would be one of the 10 largest U.S. investment-grade debt offerings in recent memory, the WSJ reports. AbbVie will use the money pay a dividend to Abbot, which will itself use the cash to pay off its own debt.

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Comments (3)
  • Moon Kil Woong
    , contributor
    Comments (13620) | Send Message
    It seems that businesses are again determining that it's a good time to raise and hoard cash again. This points to a new economic cresting. I suspect we will see an economic downturn ensuing in lo less than 12 months from now.
    28 Oct 2012, 11:54 PM Reply Like
  • tony1066
    , contributor
    Comments (152) | Send Message
    My concern with this bond issuance is whether the spin off will be too heavily leveraged to pay out a good dividend long term. Will this spin off be able to service this debt and pay a good dividend?
    29 Oct 2012, 04:37 PM Reply Like
  • PalmDesertRat
    , contributor
    Comments (3861) | Send Message
    Sold all my abt today at 65.812. I want to see what the two new companies' financials look like after the split-up. At that point I might buy back into one or both.
    31 Oct 2012, 10:28 AM Reply Like
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