8-KMaterial AgreementsFinancial EventsExhibits & Filings

GILEAD SCIENCES, INC. 8-K Report, Material Agreement (Sep 30, 2020)

Filed September 30, 2020For Securities:GILD

Summary

Gilead Sciences, Inc. (GILD) announced on September 30, 2020, the entry into an Eighth Supplemental Indenture, enabling the issuance of a substantial debt offering totaling approximately $7.75 billion. This financing is strategically divided, with a significant portion earmarked to fund the cash consideration for the previously announced acquisition of Immunomedics, Inc. The remaining proceeds are designated for the repayment of existing senior notes, specifically the 4.50% Senior Notes due 2021 and the 4.40% Senior Notes due 2021. The debt issuance comprises various tranches of floating rate notes and fixed rate senior notes with maturities ranging from 2021 to 2050. The company's intent to utilize these proceeds for strategic acquisitions and debt management signals a proactive approach to its capital structure and growth objectives. Investors should note the specific use of proceeds for each debt series and the conditions under which certain notes may be redeemed early, particularly related to the successful completion of the Immunomedics acquisition.

Key Highlights

  • 1Gilead Sciences issued approximately $7.75 billion in aggregate principal amount of new Notes.
  • 2The issuance includes $1.0 billion in Floating Rate Notes due 2021 and 2023, and $6.75 billion in Fixed Rate Notes with maturities from 2023 to 2050.
  • 3Proceeds from several tranches of notes will fund the cash consideration for the acquisition of Immunomedics, Inc.
  • 4Proceeds from the 2027 and 2050 Fixed Rate Notes will be used to repay $1.0 billion of 4.50% Senior Notes due 2021 and $1.25 billion of 4.40% Senior Notes due 2021.
  • 5The offering was conducted under the Company's Registration Statement on Form S-3.
  • 6Certain notes are subject to mandatory redemption at 101% of principal plus accrued interest if the Immunomedics acquisition is not completed by September 13, 2021, or if the merger agreement is terminated.
  • 7The Indenture includes standard covenants regarding secured indebtedness, sale and leaseback transactions, and change of control events.

Frequently Asked Questions