Summary
Amgen Inc. (AMGN) filed an 8-K report on January 16, 2009, announcing the issuance and sale of $2.0 billion in senior notes. This includes $1.0 billion of 5.70% Senior Notes due 2019 and $1.0 billion of 6.40% Senior Notes due 2039. The net proceeds from this offering are approximately $1.98 billion, intended for general corporate purposes. These purposes are broad and include working capital, capital expenditures, debt servicing, share repurchases under existing programs, and other business initiatives like potential acquisitions and licensing activities. The issuance of these notes adds to Amgen's existing debt structure and ranks equally with its other senior unsecured indebtedness. Investors should note the specific interest rates, maturity dates, and the potential for a change of control repurchase trigger.
Key Highlights
- 1Amgen Inc. issued $2.0 billion in aggregate principal amount of senior notes.
- 2The issuance comprises $1.0 billion of 5.70% Senior Notes due February 1, 2019.
- 3The issuance also comprises $1.0 billion of 6.40% Senior Notes due February 1, 2039.
- 4Net proceeds from the offering are approximately $1.98 billion.
- 5Proceeds are designated for general corporate purposes, including working capital, capital expenditures, debt repayment, and share repurchases.
- 6The notes are senior unsecured indebtedness and rank equally with other existing senior unsecured debt.
- 7A change in control triggering event could allow noteholders to require Amgen to purchase their notes at 101% of principal plus accrued interest.