, the biotech company that earlier this week posted strong second-quarter results around the cancer drug Avastin, said Wednesday it plans to offer $2 billion of debt.
The company expects to sell five-year, 10-year and 30-year senior notes. Genentech said it will use about $585 million of the net proceeds to reduce or repay its obligations under certain lease agreements, including a synthetic lease related to a manufacturing facility in Vacaville, Calif.
Genentech, based in South San Francisco, Calif., also plans to fund upgrade and start-up costs at its recently acquired biologics manufacturing facility in Oceanside, Calif.
The rest of the net proceeds will go toward general corporate purposes, which may include added capital expenditures, stock repurchases or other uses.
Shares of Genentech were recently up $1.19, or 1.4%, to $87.08, a 52-week high.