Gilead obtains $300 million term loan, $200 million revolver

By E. Janene Geiss

Philadelphia, Dec. 27 - Gilead Sciences Inc. said Tuesday that it entered into an agreement with a syndicate of banks for a $300 million five-year term loan and another $200 million five-year revolving credit facility with a capacity of up to $500 million as the $300 million term loan is repaid.

For the $300 million loan, Gilead Biopharmaceutics Ireland Corp. was the borrower and Bank of America was the administrative agent. Gilead Sciences Inc. and Gilead Vintage Park, LLC were the guarantors, according to a company news release.

For the $200 million revolver, Gilead Sciences Inc. was the borrower and Gilead Vintage Park, LLC was guarantor.

The company said the borrowings were used to facilitate the repatriation of about $280 million in foreign earnings, which its board of directors approved pursuant to the American Jobs Creation Act of 2004.

Proceeds from the repatriation will be reinvested into Gilead's domestic operations consistent with the intent of the legislation, officials said.

Gilead said its foreign subsidiary intends to use the proceeds to make a cash dividend distribution of about $280 million to the parent company before Dec. 31.

As a result of the repatriation, Gilead said it will record a one-time tax benefit of about $25 million in the fourth quarter.

Gilead Sciences is a Foster City, Calif., biopharmaceutical company that discovers, develops and commercializes therapeutics to treat unmet medical needs.

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