Gilead Prices $3.5 Billion of Senior Unsecured Notes

Rhea-AI Summary

Gilead Sciences (Nasdaq: GILD) has announced the pricing of $3.5 billion in senior unsecured notes through a public offering. The notes are structured in four tranches: $750 million at 4.80% maturing in 2029, $1 billion at 5.10% maturing in 2035, $1 billion at 5.50% maturing in 2054, and $750 million at 5.60% maturing in 2064. The offering is expected to close on November 20, 2024. The company plans to use the proceeds for general corporate purposes, including potential debt repayment. Barclays Capital and BofA Securities are serving as lead joint book-running managers for the offering.

Positive

• Successful raising of $3.5 billion through debt offering
• Structured debt with long-term maturities ranging from 2029 to 2064
• Potential debt refinancing could optimize capital structure

Negative

• Increased debt load and future interest payment obligations
• Higher interest rates ranging from 4.80% to 5.60% on new debt

Insights

Financial Analyst

This $3.5 billion senior notes offering represents a significant debt financing move by Gilead, structured across multiple maturities ranging from 2029 to 2064. The interest rates, spanning from 4.80% to 5.60%, are competitive in the current market environment. The extended maturity dates provide Gilead with long-term financing flexibility while spreading refinancing risk.

The company's ability to secure this substantial debt financing at these rates indicates strong market confidence in its creditworthiness. The stated use for "general corporate purposes" and potential debt refinancing suggests strategic financial management, possibly aimed at optimizing the company's capital structure or preparing for future opportunities. With a market cap of $119.8 billion, this debt issuance represents less than 3% of Gilead's market value, maintaining a manageable leverage profile.

FOSTER CITY, Calif.--(BUSINESS WIRE)-- Gilead Sciences, Inc. (Nasdaq: GILD), a biopharmaceutical company that has pursued and achieved breakthroughs in medicine for more than three decades, today announced the pricing of senior unsecured notes in an aggregate principal amount of $3.5 billion, in an underwritten, registered public offering, consisting of $750 million of 4.80% senior notes maturing in 2029, $1 billion of 5.10% senior notes maturing in 2035, $1 billion of 5.50% senior notes maturing in 2054 and $750 million of 5.60% senior notes maturing in 2064. The offering is expected to close November 20, 2024, subject to customary closing conditions.

Gilead intends to use the net proceeds from this offering for general corporate purposes, which may include the repayment of indebtedness.

Barclays Capital Inc. and BofA Securities, Inc. are acting as lead joint book-running managers in the offering. The offering of the securities is being made only by means of a prospectus supplement and the accompanying base prospectus, which is filed as part of Gilead’s effective shelf registration statement on Form S-3 (File No. 333-273745), copies of which may be obtained from:

Barclays Capital Inc. c/o Broadridge Financial Solutions, 1155 Long Island Avenue Edgewood, NY 11717 (888) 603-5847 Email: barclaysprospectus@broadridge.com

BofA Securities, Inc. NC1-022-02-25 201 North Tryon Street Charlotte, NC 28255 (800) 294-1322 Email: dg.prospectus_requests@bofa.com

An electronic copy of the prospectus supplement and the accompanying base prospectus and other documents Gilead has filed with the U.S. Securities and Exchange Commission (“SEC”) may also be obtained at no charge at the SEC’s website at www.sec.gov. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Gilead Sciences

Gilead Sciences, Inc. is a biopharmaceutical company that has pursued and achieved breakthroughs in medicine for more than three decades, with the goal of creating a healthier world for all people. The company is committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19, and cancer. Gilead operates in more than 35 countries worldwide, with headquarters in Foster City, California.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties and other factors, including the current market demand for these types of securities and the securities of Gilead and Gilead’s ability to consummate the offering in the currently anticipated timeframe or at all. These and other risks, uncertainties and other factors are described in detail in Gilead’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, as filed with the U.S. Securities and Exchange Commission. These risks, uncertainties and other factors could cause actual results to differ materially from those referred to in the forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The reader is cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and is cautioned not to place undue reliance on these forward-looking statements. All forward-looking statements are based on information currently available to Gilead, and Gilead assumes no obligation and disclaims any intent to update any such forward-looking statements.

Gilead and the Gilead logo are trademarks of Gilead Sciences, Inc., or its related companies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241113878559/en/

Ashleigh Koss, Media

public_affairs@gilead.com

Jacquie Ross, Investors

investor_relations@gilead.com

Source: Gilead Sciences, Inc.

FAQ

How much did Gilead Sciences (GILD) raise in its senior notes offering?

Gilead Sciences raised $3.5 billion through senior unsecured notes offering.

What are the interest rates and maturities of Gilead's (GILD) new notes?

The notes include: $750M at 4.80% (2029), $1B at 5.10% (2035), $1B at 5.50% (2054), and $750M at 5.60% (2064).

When will Gilead's (GILD) new notes offering close?

The notes offering is expected to close on November 20, 2024.

How will Gilead (GILD) use the proceeds from the notes offering?

Gilead plans to use the proceeds for general corporate purposes, which may include repayment of existing debt.