Gilead Borrowing $2.2B
Gilead Sciences (NASDAQ: GILD), the world’s largest maker of HIV medications, said today it plans to sell $2.2 billion in debt securities that can potentially be converted into equity stakes. Half of the debt comes due in 2014, while the other half is due to be paid back in 2016. The company said it plans to use at least $1 billion of the proceeds to buy back shares of its stock, which is designed to diminish the supply of shares and raise the stock price. Gilead shares slumped 1.7 percent after the news, to $32.89 at 1:10 pm Eastern, a long shot from its 52-week high of $50 a share.