Gilead enters into three new credit facilities totaling $3 billion

By Aleesia Forni

Columbus, Ohio, Jan. 17 - Gilead Sciences Inc. and Gilead Biopharmaceutics Ireland Corp. entered into a $1.25 billion five-year revolving credit facility, a $750 million short-term revolving credit facility and a $1 billion term loan facility, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Proceeds from these facilities will be used to fund the acquisition of Pharmasset Inc., to refinance the existing credit agreement and for working capital requirements and general corporate purposes.

For all three facilities, the interest rate is Libor plus 62.5 basis points to 225 bps, depending on the company's debt rating.

The $1.25 billion revolver includes a $30 million swingline loan subfacility and a $25 million letter-of-credit subfacility.

Gilead borrowed $750 million under the five-year revolver on the closing date. The revolver will terminate on Jan. 12, 2017.

Commitment fees for the five-year revolver range from 5 bps to 35 bps.

The company also borrowed $400 million under the short-term revolver, which will expire on Jan. 10, 2013.

Commitment fees will range from 4 bps to 25 bps for the short-term revolver.

Gilead may extend the maturity date to Jan. 9, 2014.

The company borrowed $1 billion under the term loan facility, which will expire on Jan. 12, 2015.

The ticking fee for the term loan facility ranges from 10 bps to 17.5 bps.

Gilead also fully prepaid the outstanding obligations under its $1.25 billion five-year revolver, dated Dec. 18, 2007.

For all three facilities, Bank of America NA is the administrative agent, and Barclays Capital is the syndication agent.

Goldman Sachs Bank USA, JPMorgan Chase Bank NA, Royal Bank of Canada and Wells Fargo Bank NA are co-documentation agents.

Bank of America Merrill Lynch and Barclays Capital are joint lead arrangers and joint bookrunners.

Gilead is a Foster City, Calif.-based biopharmaceutical company.

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