8-KMaterial AgreementsExhibits & Filings

AMGEN INC 8-K Report, Material Agreement (Dec 12, 2019)

Filed December 12, 2019For Securities:AMGN

Summary

Amgen Inc. (AMGN) announced on December 12, 2019, that it entered into a second amended and restated revolving credit agreement, significantly enhancing its financial flexibility. This agreement establishes a total commitment of $2.5 billion, with the option to increase it by an additional $750 million, providing substantial liquidity for general corporate purposes and serving as a backstop for its commercial paper program. The new credit facility has an initial five-year term, extendable for two additional one-year periods, offering long-term stability. The terms of the agreement include competitive interest rates tied to Amgen's senior debt rating and a commitment fee. It also features customary covenants and financial maintenance requirements, such as a minimum consolidated interest coverage ratio, which are standard for corporate financing agreements.

Key Highlights

  • 1Amgen entered into a Second Amended and Restated Revolving Credit Agreement on December 12, 2019.
  • 2The agreement provides a total commitment of $2.5 billion, with an option to increase by up to $750 million.
  • 3The credit facility is available for general corporate purposes and serves as a liquidity backstop for Amgen's commercial paper program.
  • 4The initial term of the revolving credit agreement is five years, with potential extensions.
  • 5Interest rates are variable, based on either LIBOR or a base rate, plus a margin dependent on Amgen's senior long-term unsecured debt rating.
  • 6A commitment fee is payable for both used and unused portions of the credit facility.
  • 7The agreement includes customary affirmative and negative covenants and requires maintenance of a minimum consolidated interest coverage ratio.

Frequently Asked Questions

The primary purpose of the second amended and restated revolving credit agreement is to provide Amgen with financial flexibility for general corporate purposes and to act as a liquidity backstop for its commercial paper program.

The total commitment under the agreement is $2.5 billion, with the potential to be increased by up to an additional $750 million at Amgen's request and the banks' discretion.

The revolving credit agreement has an initial term of five years. Amgen has the option to extend the term for up to two additional one-year periods, subject to the discretion of the respective banks.

The agreement includes customary covenants, such as limitations on mergers, asset sales, liens, and affiliate transactions. It also requires Amgen to maintain a minimum consolidated interest coverage ratio (EBITDA to total interest expense).