Summary
Biogen Idec Inc. (BIIB) filed an 8-K on May 3, 2005, reporting the significant repurchase of its Liquid Yield Option Notes Due 2032. The company repurchased approximately 99.2% of its outstanding Senior Notes, totaling $1,194,780,000 in principal amount at maturity, for a cash payment of $746,414,909. This action substantially reduces the company's outstanding debt obligation related to these specific notes. The repurchase was exercised by noteholders who had validly requested the company to buy back their notes, a right established at the time the Senior Notes were initially issued. Following this substantial repurchase, only a small fraction of the Senior Notes, representing $10,170,000 in principal amount at maturity, remains outstanding. This event is important for investors as it indicates a significant deleveraging of this particular debt instrument and a considerable outflow of cash.
Key Highlights
- 1Biogen Idec Inc. repurchased a substantial portion of its Liquid Yield Option Notes Due 2032.
- 2Approximately 99.2% of the outstanding Senior Notes were repurchased.
- 3The aggregate principal amount at maturity of the repurchased notes was $1,194,780,000.
- 4The total cash paid for the repurchase was $746,414,909.
- 5The repurchase was initiated by noteholders exercising their pre-existing right to require the company to repurchase their notes.
- 6Following the repurchase, only $10,170,000 (principal amount at maturity) of these Senior Notes remain outstanding.