Amgen 2007 Annual Report Download - page 93

Financing arrangements
The following table reflects the carrying value of our long-term borrowings under our various financing ar-
rangements as of December 31, 2007 and 2006 (in millions):
2007 2006
0.125% convertible notes due 2011 (2011 Convertible Notes) ......................... $ 2,500 $2,500
0.375% convertible notes due 2013 (2013 Convertible Notes) ......................... 2,500 2,500
Floating rate notes due 2008 (2008 Floating Rate Notes) .............................. 2,000 —
5.85% notes due 2017 (2017 Notes) .............................................. 1,099 —
4.85% notes due 2014 (2014 Notes) .............................................. 1,000 1,000
4.00% notes due 2009 (2009 Notes) .............................................. 999 999
6.375% notes due 2037 (2037 Notes) ............................................. 899 —
Zero coupon 30 year modified convertible notes due in 2032 (2032 Modified Convertible
Notes) ................................................................... 80 1,778
Other ...................................................................... 100 235
Total borrowings ........................................................... 11,177 9,012
Less current portion ........................................................... 2,000 1,798
Total non-current debt ....................................................... $ 9,177 $7,214
In May 2007, we issued $2.0 billion aggregate principal amount of floating rate notes due in November
2008 (the “2008 Floating Rate Notes”), $1.1 billion aggregate principal amount of notes due in 2017 (the “2017
Notes”) and $900 million aggregate principal amount of notes due in 2037 (the “2037 Notes”) in a private
placement. The 2008 Floating Rate Notes bear interest at a rate per annum equal to LIBOR plus 0.08%, which is
reset quarterly. We may redeem the 2008 Floating Rate Notes, in whole or from time to time in part, at any time
at a redemption price equal to 100% of the principal amount being redeemed plus accrued interest. The 2017
Notes and 2037 Notes pay interest at fixed annual rates of 5.85% and 6.375%, respectively. The 2017 Notes and
2037 Notes may be redeemed, in whole of from time to time in part, at 100% of the principal amount of the notes
being redeemed plus accrued interest, if any, and a “make-whole” amount, as defined. In the event of a change in
control triggering event, as defined, we may be required to purchase for cash all or a portion of the 2008 Floating
Rate Notes, the 2017 Notes and the 2037 Notes at a price equal to 101% of the principal amount of the notes plus
accrued interest. Debt issuance costs totaled approximately $16 million and are being amortized over the life of
the notes. A total of $3.2 billion of the net proceeds raised from the issuance of these notes were used to re-
purchase shares of our common stock under a block trade entered into in May 2007.
In February 2006, we issued $2.5 billion principal amount of convertible notes due in 2011 (the “2011 Con-
vertible Notes”) and $2.5 billion principal amount of convertible notes due in 2013 (the “2013 Convertible
Notes”) in a private placement. The 2011 Convertible Notes and the 2013 Convertible Notes were issued at par
and pay interest at a rate of 0.125% and 0.375%, respectively. The 2011 Convertible Notes and the 2013 Con-
vertible Notes may be convertible based on an initial conversion rate of 12.5247 shares and 12.5814 shares,
respectively, per $1,000 principal amount of notes (which represents an initial conversion price of approximately
$79.84 and $79.48 per share, respectively). The 2011 Convertible Notes and the 2013 Convertible Notes may on-
ly be converted (i) during any calendar quarter if the closing price of our common stock exceeds 130% of the
respective conversion price per share during a defined period at the end of the previous quarter, (ii) if we make
specified distributions to holders of our common stock or specified corporate transactions occur or (iii) one
month prior to the respective maturity date. Upon conversion, a holder would receive (i) cash equal to the lesser
of the principal amount of the note or the conversion value, as defined, and (ii) to the extent the conversion value
exceeds the principal amount of the note, shares of our common stock, cash or a combination of common stock
and cash, at our option (the “excess conversion value”). In addition, upon a change in control, as defined, the
holders may require us to purchase for cash all or a portion of their notes for 100% of the principal amount of the
notes plus accrued and unpaid interest, if any.
In connection with the issuance of these convertible notes, a total of $3.0 billion of our common stock was
repurchased under our stock repurchase program. Also concurrent with the issuance of the 2011 Convertible
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