Gilead Sciences, Inc. (Nasdaq:GILD) today announced the closing of its sale of $1.1 billion aggregate principal amount of 1.00% convertible senior notes due 2014 and $1.1 billion aggregate principal amount of 1.625% convertible senior notes due 2016 to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). The net proceeds from this offering were approximately $2.166 billion, after deducting estimated discounts, commissions and expenses.
On July 26, 2010, Gilead granted the underwriters a 13-day option to purchase up to $150 million in aggregate principal amount of additional 2014 notes and up to $150 million in aggregate principal amount of additional 2016 notes. No portion of the option has been exercised to date.
Gilead has already used approximately $248 million of the net proceeds from the offering to repurchase shares of its common stock and expects to use at least another $752 million of the net proceeds from the offering to repurchase shares of its common stock, in each case pursuant to its previously announced $5 billion stock repurchase program.