Summary
Bristol-Myers Squibb Company (BMY) has announced an extension for its previously launched offers to exchange outstanding Celgene Corporation notes for new BMY notes and cash. The expiration date for these exchange offers and related consent solicitations to amend Celgene's debt covenants has been pushed back from June 3, 2019, to July 8, 2019. This extension is a procedural step related to the company's pending acquisition of Celgene, which is expected to close in the third quarter of 2019. The exchange offers and consent solicitations are contingent upon the successful closing of the Celgene merger, highlighting the interconnectedness of these financial maneuvers. The settlement of these offers is anticipated to occur shortly after the new expiration date and around the time of the merger's closing, indicating a coordinated financial integration strategy.
Key Highlights
- 1BMY extended the expiration date for its exchange offers and consent solicitations related to Celgene notes from June 3, 2019, to July 8, 2019.
- 2The exchange offers involve trading Celgene Notes for new BMY notes and cash, up to an aggregate principal amount of $19,850,000,000.
- 3The consent solicitations aim to amend Celgene's debt agreements, specifically to eliminate restrictive covenants and certain default provisions.
- 4These actions are directly linked to BMY's planned acquisition of Celgene, with the closing of the merger being a key condition.
- 5The settlement of the exchange offers and consent solicitations is expected to occur on or about the closing date of the Celgene merger.
- 6The closing of the Celgene merger is anticipated in the third quarter of calendar year 2019.
- 7Supplemental indentures to effect the amendments for Celgene Notes were executed on May 1, 2019, but will only become operative upon settlement.