Amgen says $1.59 billion LYONs put back, leaving $2.36 billion outstanding

New York, March 2 - Amgen Inc. said holders of $1.59 billion principal amount of its Liquid Yield Option Notes due 2032 exercised the put option, leaving $2.36 billion principal amount outstanding.

The response was despite the addition of a sweetener to discourage exercise of the put.

The put was at $738.68 per $1,000 principal amount at maturity, and Amgen chose to pay it in cash.

As an incentive not to exercise the option, the Thousand Oaks, Calif., biotechnology company offered a one-time cash payment of $9.23 per $1,000 principal amount at maturity, equivalent to 1.25% of the accreted value.

Amgen also amended the LYONs indenture to add a further put on March 1, 2006 at the accreted value of $747.01 per $1,000 principal amount at maturity. The new put will be payable in cash, stock or a combination.

Investors could exercise the option up to 5 p.m. ET on March 1.

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