July 13, 2000
Gilead Sciences Calls for Redemption of Convertible Subordinated Notes
Foster City, CA -- July 13, 2000
Gilead Sciences, Inc. (Nasdaq: GILD) has called for the redemption on August 15, 2000, of the company's 6.25% Convertible Subordinated Debentures due August 1, 2004 ("Notes"). The aggregate principal amount outstanding of the Notes is approximately $79.5 million.
Prior to 5:00 p.m., Eastern Time, on August 11, 2000, holders may convert their Notes into shares of Gilead common stock at a price of approximately $44.57 per share, or approximately 22.4366 shares of Gilead common stock per $1,000 principal amount of Notes. Cash will be paid in lieu of fractional shares. On July 12, 2000, the closing price of Gilead common stock on the Nasdaq National Market was $89.38 per share.
Alternatively, holders may have their Notes redeemed at a total redemption price of $1,030.00 per $1,000 principal amount of Notes, plus accrued interest to the date of redemption. Any Notes not converted on or before 5:00 p.m., Eastern Time, on August 11, 2000, will be automatically redeemed on August 15, 2000, after which interest will cease to accrue. So long as the market price of the Gilead common stock is greater than $45.92 per share, a holder of the Notes who converts will receive Gilead common stock with a market value (plus cash in lieu of any fractional shares) greater than the amount of cash the holder would otherwise be entitled to receive upon redemption.
A Notice of Redemption is being mailed by the Bank of New York, the trustee of the Notes, to all registered holders of the Notes. Copies of the Notice of Redemption and additional information related to the procedure for redemption may be obtained from the Bank of New York by calling 1-800-438-5373.
Gilead Sciences, Inc., headquartered in Foster City, CA, is an independent biopharmaceutical company that seeks to provide accelerated solutions for patients and the people who care for them. Gilead discovers, develops, manufactures and commercializes proprietary therapeutics for challenging infectious diseases (viral, fungal and bacterial infections) and cancer. Gilead maintains research, development or manufacturing facilities in Foster City, CA; Boulder, CO; San Dimas, CA; Cambridge, UK and Dublin, Ireland and sales and marketing organizations in the United States, Europe and Australia.