Summary
Amgen Inc. (AMGN) announced on February 25, 2016, the successful issuance and sale of €1.25 billion in 1.250% Senior Notes due 2022 and €750 million in 2.000% Senior Notes due 2026. This offering raised approximately €1.99 billion in net proceeds for the company after accounting for underwriting discounts and offering expenses. The notes are senior unsecured debt, ranking equally with existing and future senior unsecured indebtedness. This debt issuance provides Amgen with additional capital, potentially for general corporate purposes, research and development, or strategic initiatives. The terms include annual interest payments and a maturity date in 2022 for the shorter-term notes and 2026 for the longer-term notes. A notable feature is a provision allowing noteholders to require Amgen to repurchase their notes at 101% of the principal amount, plus accrued interest, in the event of a change of control triggering event.
Key Highlights
- 1Amgen issued €1.25 billion of 1.250% Senior Notes due 2022 and €750 million of 2.000% Senior Notes due 2026.
- 2Total net proceeds from the offering amounted to approximately €1.99 billion.
- 3The notes are senior unsecured obligations of Amgen.
- 4Interest on the 2022 Notes is 1.250% per annum, payable annually, maturing February 25, 2022.
- 5Interest on the 2026 Notes is 2.000% per annum, payable annually, maturing February 25, 2026.
- 6The offering included a change of control provision requiring repurchase of notes at 101% of principal plus interest.
- 7Amgen also filed its computation of the ratio of earnings to fixed charges for the years 2011-2015.