Sun Pharmaceutical Industries Limited (Sun Pharma) has authorized up to ₹10,000 crore in bonds, which Reuters and The Economic Times reported would refinance borrowing for its proposed Organon & Co. acquisition.
The Oct. 12 board decision permits one or more private placements of nonconvertible debentures and leaves the terms to a finance committee. The filing specifies no use for the proceeds, coupon rates or maturity dates. The ₹10,000 crore ceiling equals ₹100 billion.
Sun Pharma agreed on April 27 to pay $14 in cash for each Organon share. The companies gave the proposed acquisition an enterprise value of $11.75 billion. Organon shareholders approved the proposal in July, while Sun Pharma said the transaction still required regulatory approvals.
The Economic Times, citing people familiar with the sale, reported a ₹7,000 crore tranche with an annual coupon of 8.20% and a ₹3,000 crore tranche paying 8.05%. It said both would mature in 2031, with holders of the smaller tranche able to seek repayment in 2028. Reuters separately reported the coupon rates but described the amounts as pre-bid ranges rather than a final allocation.
Sun Pharma said in April that it planned to use available cash and committed bank financing for the acquisition. Crisil Ratings estimated that $2 billion to $2.5 billion would come from cash and internally generated funds, with $9.5 billion to $10 billion in additional debt. Crisil projected a net debt-to-EBITDA ratio of 1.5 to 2 in fiscal 2028, the first full year after the proposed acquisition. EBITDA means earnings before interest, taxes, depreciation and amortization. The ratings firm expects cash generation to support debt reduction afterward.
The acquisition remains subject to regulatory approvals, Sun Pharma said in July. Reuters reported that bankers had invited bids for Thursday, Oct. 22.
