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Amgen Obtains Buyout Financing; Quikrete Sets September Meeting

Amgen Inc. obtained bank commitments for as much as $1.65 billion to support its buyout of Onyx Pharmaceuticals Inc., while Quikrete Companies Inc. set a Sept. 10 lender meeting to discuss $1.62 billion of acquisition loans.

Bank of America Corp., JPMorgan Chase & Co. and Barclays Plc are arranging the transaction for the world’s largest biotechnology company by sales, Amgen said in a regulatory filing today. The acquisition, which has a purchase price of $10.4 billion or $9.7 billion net of estimated Onyx cash, will be financed using $8.1 billion in bank loans and cash the company has in the U.S., according to a statement yesterday distributed by PR Newswire.

Wells Fargo & Co. is arranging the financing for Quikrete to support its purchase of Custom Building Products Inc., according to a person with knowledge of the matter who asked not to be identified because terms aren’t set. The transaction includes a $1.23 billion term loan, a $190 million second-lien portion and a $200 million asset-backed piece.

Prices of leveraged loans fell 0.01 cent today to 97.66 cents on the dollar, according to the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 Index. That’s the lowest since July 10.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net.

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net.

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