Amgen Offers to Purchase $2.9 Billion in Senior Notes

Amgen, Inc., has provided holders of its Liquid Yield Option Notes due 2032 (Zero Coupon-Senior) the opportunity to surrender their notes for purchase at a price of $738.68 per $1,000 of principal amount. The Put Option, which expires on March 1, 2005, allows each holder to require Amgen to purchase all or any part of their LYONs at maturity. If all outstanding LYONs are surrendered, the aggregate cash purchase price will be approximately $2.9 billion. This offer is made in accordance with the terms of the Indenture for the LYONs and will be supported by a Tender Offer Statement filed with the Securities and Exchange Commission.

Key Takeaways:

• Amgen has offered to purchase $2.9 billion in Liquid Yield Option Notes due 2032 (Zero Coupon-Senior) at $738.68 per $1,000 of principal amount.
• The Put Option, which expires on March 1, 2005, allows holders to surrender their LYONs for purchase at maturity.
• Amgen will pay the purchase price solely in cash, with no option to pay with common stock or a combination of cash and stock.
• The LYONs are convertible into 8.8601 shares of Amgen's common stock per $1,000 principal amount at maturity, subject to certain adjustments.
• Amgen has filed a Tender Offer Statement with the Securities and Exchange Commission to support the offer.
• Documents specifying the terms, conditions, and procedures for surrendering and withdrawing LYONs for purchase are available through The Depository Trust Company and the paying agent.

Statistics:

• $2.9 billion: Aggregate cash purchase price for all outstanding LYONs surrendered.
• $738.68: Price per $1,000 of principal amount for the purchase of LYONs.
• March 1, 2005: Expiration date of the Put Option.
• 8.8601: Number of shares of Amgen's common stock equivalent to $1,000 principal amount of LYONs.
• 2005: Year in which the put option expires.

Sources:

• Amgen, Inc.
• Health & Medicine Week
• NewsRx.com
• NewsRx.net
• Securities and Exchange Commission