8-KOther EventsExhibits & Filings

BIOGEN INC. 8-K Report, Corporate Update (Sep 16, 2015)

Filed September 16, 2015For Securities:BIIB

Summary

Biogen Inc. (BIIB) filed an 8-K on September 16, 2015, reporting the completion of a $6.0 billion notes issuance on September 15, 2015. This significant debt financing comprised four tranches with varying interest rates and maturity dates, ranging from 2.900% for notes due in 2020 to 5.200% for notes due in 2045. The net proceeds from this offering are earmarked for share repurchases and general corporate purposes, including working capital. This issuance is particularly noteworthy as Biogen had previously authorized a substantial share repurchase program, with approximately $2.7 billion remaining under authorized programs as of September 14, 2015. The debt financing provides Biogen with the capital to continue executing its share buyback strategy and maintain financial flexibility for other corporate needs. Investors should note the company's commitment to returning capital to shareholders through these buybacks, funded by this new debt issuance.

Key Highlights

  • 1Biogen completed the issuance and sale of $6.0 billion aggregate principal amount of notes on September 15, 2015.
  • 2The notes were issued in four tranches: $1.5 billion (2.900% due 2020), $1.0 billion (3.625% due 2022), $1.75 billion (4.050% due 2025), and $1.75 billion (5.200% due 2045).
  • 3The notes were registered under a Form S-3 shelf registration statement filed on September 8, 2015.
  • 4The proceeds from the notes issuance are intended for the purchase of Biogen's common stock and for working capital and other general corporate purposes.
  • 5As of September 14, 2015, Biogen had approximately $2.3 billion of its $5.0 billion share repurchase program completed, with additional shares authorized under a prior program.
  • 6The company is using debt financing to fund significant share repurchases, indicating a strategy to return capital to shareholders.

Frequently Asked Questions

The primary purpose of the $6.0 billion notes issuance is to fund purchases of Biogen's common stock and to provide capital for working capital and other general corporate purposes.

This debt issuance is directly linked to Biogen's share repurchase program. The company has authorized substantial share buybacks and is using the proceeds from these notes to continue executing that strategy, indicating a commitment to returning capital to shareholders.

The notes were issued in four series: $1.5 billion of 2.900% notes due September 15, 2020; $1.0 billion of 3.625% notes due September 15, 2022; $1.75 billion of 4.050% notes due September 15, 2025; and $1.75 billion of 5.200% notes due September 15, 2045.

Yes, as of September 14, 2015, Biogen had already purchased approximately $2.3 billion worth of its common stock under a $5.0 billion repurchase program authorized in May 2015. Additionally, there were approximately 1.3 million shares remaining authorized under a February 2011 program.