The CSL Limited (ASX: CSL) share price has started the week in the red.
In late morning trade, the biotherapeutics giant’s shares are down 2% to $243.68.
Why is the CSL share price falling today?
The weakness in the CSL share price today could have been driven by a note out of S&P Global Ratings, which appears to have overshadowed the completion of its share purchase plan.
According to the note, the ratings agency has affirmed its ‘A-2’ short-term rating on the company with a negative outlook. The latter suggests that a downgrade to its rating could occur in the future.
S&P commented: “The negative outlook reflects our view that the incremental debt burden to part fund the [Vifor] acquisition will cause leverage to increase above adjusted debt to EBITDA of 2.0x. It also reflects the view that the company’s credit metrics could remain above our tolerances for the ‘A-‘ rating level if it experiences any unexpected operational issues or if the integration benefits from the Vifor acquisition are not realized in a timely manner.”
Share purchase plan completes
In other news, this morning CSL announced the completion of its share purchase plan.
The release notes that the company has raised $750 million at $253.57 per new share. This represents a 2% discount to the five-day volume weighted average CSL share price up to and including the closing date of the share purchase plan.
These funds will be used to support the proposed acquisition of Vifor Pharma.
The company revealed that the share purchase plan received strong support from eligible shareholders, with a total of 56,180 individual holders participating. Valid applications totalled $942.7 million, which meant the offer had to be scaled back.
CSL’s Chief Executive Officer and Managing Director, Paul Perreault, commented: “We are delighted with the strong support we have received for the acquisition of Vifor Pharma from our shareholders. On behalf of the Board, I wish to thank all shareholders who participated in the SPP. We look forward to delivering on the exciting growth opportunities underpinning the acquisition of Vifor Pharma.”
The post What’s going on with the CSL (ASX:CSL) share price today? appeared first on The Motley Fool Australia.
Should you invest $1,000 in CSL right now?
Before you consider CSL, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CSL wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- Healthy income… Is CSL (ASX:CSL) still an ASX 200 dividend growth share?
- Are these the best ASX 200 blue chips to buy right now?
- 2 highly rated ASX 200 shares to buy immediately
- Why this top broker is ‘cautious’ on the outlook for CSL (ASX:CSL) shares
- 2 ASX shares at a golden buying opportunity right now
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/Nw4xMAL
Leave a Reply