Baxalta announces secondary offering of common stock owned by Baxter International

28-Jan-2016 - USA

Baxalta Incorporated announced the commencement of an underwritten public offering of approximately $1.45 billion of its common stock previously issued to and currently owned by Baxter International Inc., Baxalta’s former parent company. Baxalta is not selling any shares and will not receive any proceeds from the sale of the shares in the offering or the debt-for-equity exchange.

Prior to the closing of the offering, Baxter will exchange the shares of Baxalta common stock to be sold in the offering for indebtedness of Baxter currently held by Chase Lincoln First Commercial Corporation (“Chase Lincoln”), an affiliate of the underwriter in the offering. Following the debt-for-equity exchange and offering, Baxter’s retained ownership stake in Baxalta will be reduced from 19.4% to 14.3% (based on the Baxalta closing stock price on January 25, 2016). Chase Lincoln, as selling shareholder, will then sell these shares of Baxalta common stock to the underwriter in connection with the public offering.

J.P. Morgan Securities LLC is acting as the sole underwriter for the offering.

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