Amgen 2007 Annual Report Download - page 152

AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
2009 Notes and 2014 Notes
At December 31, 2007 and 2006, we had $1.0 billion aggregate principal amount of 4.00% notes due 2009
(the “2009 Notes”) and $1.0 billion aggregate principal amount of 4.85% notes due 2014 (the “2014 Notes”) out-
standing, originally issued in November 2004.
Other
We had $100 million of debt securities outstanding at December 31, 2007 and 2006 with a fixed interest rate
of 8.125% that mature in 2097 (the “Century Notes”). These securities may be redeemed in whole or in part at
our option at any time for a redemption price equal to the greater of the principal amount to be redeemed or the
sum of the present values of the principal and remaining interest payments discounted at a determined rate plus,
in each case, accrued interest.
During the year ended December 31, 2007, we repaid $135 million of other debt securities.
Shelf registration statements and other facilities
In 2007, we established a $2.5 billion unsecured revolving credit facility to be used for general corporate
purposes, including commercial paper support, which matures in November 2012 and replaces our prior $1.0 bil-
lion unsecured revolving credit facility. At December 31, 2007, we also had commercial paper authorization of
$1.2 billion. No amounts were outstanding under the credit facility or commercial paper program as of De-
cember 31, 2007.
In 2003, we established a $1.0 billion shelf registration statement (the “$1.0 Billion Shelf”) to provide for
financial flexibility. The $1.0 Billion Shelf allows us to issue debt securities, common stock and associated pre-
ferred share purchase rights, preferred stock, warrants to purchase debt securities, common stock or preferred
stock, securities purchase contracts, securities purchase units and depositary shares. Under the $1.0 Billion Shelf,
all of the securities available for issuance may be offered from time to time with terms to be determined at the
time of issuance. As of December 31, 2007, no securities had been issued under the $1.0 Billion Shelf.
As of December 31, 2007, we have $400 million remaining under a shelf registration statement that was es-
tablished in 1997. In connection with this shelf registration, we established a $400 million medium-term note
program. All of the $400 million of debt securities available for issuance may be offered from time to time under
our medium-term note program with terms to be determined at the time of issuance. As of December 31, 2007,
no securities were outstanding under the $400 million medium-term note program.
To achieve a desired mix of fixed and floating interest rate debt we entered into interest rate swap agree-
ments for our 2009 Notes, 2014 Notes and Century Notes that effectively convert the payment of our fixed rate
notes to LIBOR-based variable interest payments over the life of the respective notes. These interest rate swap
agreements qualify and are designated as fair value hedges. As of December 31, 2007, the aggregate face amount
of this outstanding fixed interest rate debt of $2.1 billion was covered by these interest rate swap agreements. As
of December 31, 2006, the aggregate face amount of our outstanding fixed interest rate debt covered by interest
rate swap agreements was $2.2 billion, including the 2009 Notes, 2014, Notes, Century Notes and $100 million
of other notes that matured and were repaid during 2007 at which time the interest rate swap agreement matured.
Certain of our financing arrangements contain non-financial covenants and as of December 31, 2007, we are
in compliance with all applicable covenants. None of our financing arrangements contain any financial cove-
nants.
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