Amgen obtains $5 billion term loan facility at Libor plus 100 bps

By Toni Weeks

San Luis Obispo, Calif., Sept. 20 - Amgen Inc. obtained a five-year $5 billion senior unsecured term loan facility credit agreement on Sept. 20 with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Term loans under the facility are subject to quarterly amortization equal to 2.5% of the original aggregate principal amount. The remaining balance will mature and be payable in full on Sept. 20, 2018.

Loans will initially bear interest at Libor plus 100 basis points. The margin may range from 75 bps to 162.5 bps based on the rating of Amgen's senior long-term unsecured debt.

Proceeds will be used, along with other available funds, to finance Amgen's acquisition of Onyx Pharmaceuticals, Inc. and to pay related fees and expenses.

The companies' boards of directors unanimously approved the deal for Amgen to acquire all of the outstanding shares of Onyx for $125 per share in cash, as reported on Aug. 26 by Prospect News. The purchase price is $10.4 billion, of $9.7 billion net of estimated Onyx cash.

Thousand Oaks, Calif.-based Amgen manufactures and markets human therapeutics based upon advances in cellular and molecular biology. Onyx is a San Francisco-based biopharmaceutical company.

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