Cisco Systems Inc. sold $13.5 billion of bonds in the U.S. investment-grade debt market to partly finance its proposed $28 billion acquisition of Splunk Inc.
The sale is the latest sign that investors are willing to buy bonds that help fund acquisitions, a form of debt they largely avoided for much of the last year. Last week Bristol Myers Squibb sold $13 billion of bonds to help finance two of acquisitions, an offering that gathered orders exceeding $85 billion.
Biotech giant AbbVie Inc., which agreed in November to buy ImmunoGen Inc. for a total equity value of $10.1 billion, is also looking at selling bonds. It asked a group of banks—including Morgan Stanley, JPMorgan Chase & Co., Bank of America, and Citigroup Inc.—to arrange a series of calls with fixed-income investors on Wednesday.
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