Here's Where Amgen's Loan To Acquire Horizon Therapeutics For $28B Ranks Among M&A Deals In 2022

Zinger Key Points
  • Amgen has agreed to acquire Horizon Therapeutics.
  • The California-based biotech company will get a $28.5 billion bridge loan to fund the deal. 

Amgen Inc's AMGN deal to acquire Horizon Therapeutics HZNP requires a sizable loan that ranks among the biggest debt commitments for M&A deals this year.

What To Know: Amgen has agreed to acquire Horizon in a deal that values the company at more than $28 billion. The California-based biotech company will get a $28.5 billion bridge loan to fund the deal.

Bridge loans provided by banks are usually replaced with permanent financing in the bond market and then sold to institutional investors, per Bloomberg. 

See Also: What's Going On With Amgen Stock Today?

Amgen will use the loan to help fund the deal. Part of it can also be used to pay down Horizon's debt. The loan will mature in a year so Amgen will have to return to the bond market by December 2023. 

Here's a look at how the loan stacks up against other companies that have walked the same financing path this year.

2022's Other Major Investment-Grade Bridge Loans For M&A

  • Broadcom Inc's AVGO $32 billion loan to acquire Vmware Inc VMW
  • Kroger Co's KR $17.4 billion loan to acquire Albertsons Companies Inc ACI
  • Philip Morris International Inc's PM $17 billion loan to acquire Swedish Match
  • Oracle Corp's ORCL $15.7 billion loan to acquire Cerner Corporation 

AMGN Price Action: Amgen has a 52-week high of $296.67 and a 52-week low of $209.

The stock was down 1.29% at $275.06 at time of publication, according to Benzinga Pro.

Photo: Netherlands Embassy from Flickr.

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Posted In: M&ANewsFinancingBloombergBridge Loans
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