By Ronda Fears
Nashville, Tenn., Feb. 22 - Amgen Inc. sold $2.5 billion in proceeds of 30-year zero-coupon convertible senior notes at 71.423 for a yield to maturity of 1.125% and a 40% initial conversion premium. Merrill Lynch & Co. was sole lead manager of the overnight Rule 144A deal, which sold at the midpoint of yield guidance of 1.0% to 1.25% and at the cheap end of premium talk of 40% to 45%.
Thousand Oaks, Calif.-based Amgen expects to use proceeds to buyback of approximately $650 million of its common stock and for general corporate purposes, including acquisitions, additional share repurchases, capital expenditures and working capital. The biotech firm is in the process of a $16 billion acquisition of Immunex, including a payment of about $2.5 billion in cash, which is expected to close in the second half of the year.
Terms of the new deal are:
Issuer: Amgen Inc.
Amount: $2.5 billion (proceeds)
Greenshoe: $321 million (proceeds)
Lead Manager: Merrill Lynch
Maturity Date: March 1, 2032
Coupon: 0%
Issue Price: 71.423
Yield-to-maturity: 1.125%
Conversion Premium: 40%
Conversion Price: $80.61
Conversion Ratio: 8.8603
Call: non-callable for five years
Put: in years three, five, 10 and 15
Contingent Conversion: no
Rating(s): Moody's: A2
| S&P: A
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| Settlement Date: | Feb. 27
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