8-KRegulation FD

AMGEN INC 8-K Report, Regulation FD Disclosure (Nov 19, 2013)

Filed November 19, 2013For Securities:AMGN

Summary

Amgen Inc. (AMGN) has filed an 8-K report detailing a significant financial action concerning its subsidiary, Onyx Pharmaceuticals. On November 19, 2013, Amgen announced, through Onyx, its intention to redeem all outstanding 4.00% Convertible Senior Notes due 2016. This redemption is scheduled for December 24, 2013, and will involve paying a redemption price of $1,115.99 per $1,000 principal amount. This price includes a substantial make-whole premium of $101.66 per $1,000 principal amount of notes redeemed.

Key Highlights

  • 1Amgen, via its subsidiary Onyx Pharmaceuticals, announced the redemption of all outstanding 4.00% Convertible Senior Notes due 2016.
  • 2The redemption date is set for December 24, 2013.
  • 3The redemption price is $1,115.99 for every $1,000 principal amount of notes.
  • 4The redemption price includes a significant 'make-whole' premium of $101.66 per $1,000 principal amount.
  • 5As of November 15, 2013, the total outstanding principal amount of these notes was $35,000.
  • 6This action signals a move to retire specific debt obligations within Onyx.
  • 7The filing is made under Regulation FD disclosure.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose Amgen's intention, through its subsidiary Onyx Pharmaceuticals, to redeem its outstanding 4.00% Convertible Senior Notes due 2016. This action is being taken in accordance with the terms of the indenture governing the notes.

The redemption is scheduled for December 24, 2013. The redemption price will be $1,115.99 for every $1,000 principal amount of notes being redeemed.

The make-whole premium is an additional amount paid to noteholders to compensate them for the early redemption of their convertible notes. It is intended to approximate the value they would have received had the notes matured as originally scheduled, and in this case, it amounts to $101.66 per $1,000 principal amount of notes redeemed.

As of November 15, 2013, the total outstanding principal amount of the 4.00% Convertible Senior Notes due 2016 was $35,000.