Bristol‑Myers Squibb has launched a cash tender offer to repurchase up to $7 billion of its outstanding senior notes, allocating $4 billion to Pool 1 and $3 billion to Pool 2. The offer covers a range of notes due between 2026 and 2055, including 4.95% notes due 2026, 4.125% notes due 2027, 4.0% notes due 2028, 4.9% notes due 2029, and 3.625% notes due 2029, among others.
The company will fund the repurchase with net proceeds from a new notes offering and approximately $3 billion of cash on hand. The new notes offering is expected to raise sufficient capital to cover the tender, while the existing cash position provides a buffer for the transaction. The tender will close on December 3, 2025, with an early deadline of November 17, 2025 for holders who wish to accept the offer before the final closing.
Bristol‑Myers Squibb’s Q3 2025 financial results showed total debt of about $49 billion and cash and cash equivalents of $16.9 billion. Interest expense on debt was $480 million in Q3, down slightly from $494 million in Q1. The repurchase of higher‑rate notes is expected to reduce the company’s overall interest burden and improve its debt‑to‑equity profile, freeing cash for future investments.
The tender aligns with the company’s broader strategy to strengthen its financial position amid a portfolio transformation. Bristol‑Myers Squibb is shifting focus from legacy drugs such as Eliquis and Revlimid to growth brands like Breyanzi, Reblozyl, and Opdivo, while also pursuing cost‑cutting initiatives that aim to save $2 billion by 2027. Reducing debt supports these initiatives by lowering financing costs and providing flexibility for capital allocation.
The tender offer is part of Bristol‑Myers Squibb’s ongoing effort to maintain an investment‑grade rating and to fund its pipeline development and growth portfolio. The company’s Q3 2025 results exceeded analyst expectations, with revenue of $12.2 billion versus $11.8 billion expected and earnings per share of $1.63 versus $1.52 expected. The company raised its full‑year 2025 revenue guidance to $47.5 billion to $48.0 billion, reflecting strong performance in its growth portfolio.
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