AbbVie Looking to Raise $28 Billion in High-Grade Bond Market

AbbVie plans to raise $28 billion in the bond market to finance its $63 billion acquisition of Allergan. This would be the fourth largest US corporate bond offering. The current market conditions are favorable for such financing, with investment grade bond yields at their narrowest spread since 2018. The bond is rated Triple B, a sector that has grown rapidly and raised some concerns, though it has performed well recently.

What is the primary purpose of AbbVie's bond offering?

• To refinance existing debt

• To expand into new markets

• To invest in new technology

• To finance the acquisition of Allergan

Why is the current market considered favorable for companies to finance themselves?

• Narrow spread in investment-grade bonds

• High interest rates

• Increased demand for stocks

• Rising inflation rates

What is a notable characteristic of the Triple B rated tier?

• It has decreased in size over the past decade

• It is exclusive to technology companies

• It is the least risky investment option

• It has tripled in market value over the past decade

What concern is associated with the Triple B rated sector?

• It offers low returns

• It has expanded too quickly

• It has been underperforming

• It is limited to a few industries

When is AbbVie's bond offering expected to come to market?

• Tomorrow

• In two weeks

• Next month

• Next week