Bristol Myers Squibb optimises its capital structure
Published: Sep 2026
Best Funding Solution
Highly Commended Winner
Bristol Myers Squibb
Photo of Ravi Patel, Bristol Myers Squibb, Rizwana Ameer, Citi and Peter Foster, J.P. Morgan.
Keith Gaub
Vice President, Assistant Treasurer
United States
Bristol Myers Squibb is a global biopharmaceutical company dedicated to discovering, developing and delivering innovative medicines that help patients overcome serious diseases.
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The challenge
Following multiple acquisitions, Bristol Myers Squibb (BMS) had accumulated a long-term debt portfolio of more than $50bn which was almost 99% denominated in US dollar.
However, BMS generates approximately 30% of its revenue internationally across various currencies. As a result, the company is subject to FX volatility, as well as relying almost solely on US dollar financing conditions.
In 2024, BMS made an external commitment to repay US$10bn of debt over the following two years to demonstrate its priority to maintain a strong investment‑grade credit rating and preserve financial flexibility. The low likelihood of needing to raise capital during that period created a runway to improve the company’s capital structure.
The solution
The chosen solution involved establishing a euro financing entity to issue euro debt and diversify BMS’ capital structure.
Keith Gaub, Vice President, Assistant Treasurer, explains: “Not only is euro our largest foreign currency cash flow exposure, but we also have exposure to other currencies with high correlation to euro versus US dollar. Outside the US, the European debt capital markets are among the largest globally. This gave us confidence that we had ample capacity to issue euro debt in an efficient manner.”
Given the company’s deleveraging commitment to bondholders and rating agencies, the transaction had to be done in a leverage-neutral manner. This involved a comprehensive liability management exercise, using the euro debt issuance proceeds to retire existing US dollar debt.
This approach capitalised on favourable interest rate differentials between the currencies. It also established a natural hedge to FX movements impacting earnings and leverage metrics.
As well as issuing €5bn of Eurobonds and using the proceeds to retire existing US dollar debt, BMS incrementally repurchased US$3bn of US dollar bonds using cash on hand. This allowed the company to reduce leverage without compromising financial flexibility.
“We took a balanced approach to our repurchase, which included high coupon debt, large maturity towers, and opening up the full credit curve for participation,” comments Gaub.
Best practice and innovation
The solution demonstrates best practice by aligning the currency mix of BMS’ capital structure and its cash flow generation, while reducing the company’s dependence on a single financing market.
The solution has also helped to mitigate negative leverage impacts directly related to FX. This is critically important, given the need to maintain a strong investment-grade credit rating and deliver on BMS’ debt repayment commitment as the company faces loss of exclusivity (LOE) on key legacy brands.
With the solution, treasury has better aligned the company’s financing strategy with the economic footprint of the business.
The outcome
“Our solution was efficiently executed and very well received by investors. We successfully reestablished ourselves as an issuer in the European market, with favourable pricing and significant oversubscription across all tranches,” says Gaub.
Benefits of the project included:
Reduction in structural FX risk.
Meaningful EPS accretion from issuing lower-coupon euro debt and using the proceeds – together with cash on hand – to retire higher-coupon US dollar debt.
Debt maturities shifted outside the period in which key BMS products will lose exclusivity.
Almost 20% reduction in US debt outstanding.
Expansion of investor base in European market.
Beyond these considerable benefits, Gaub says the solution has also had a positive outcome for the pipeline of BMS’s business, as well as for patients.
“This transaction enhanced our financial flexibility as the enterprise manages through loss of exclusivity on key products while continuing to invest in future growth,” he says. “A stronger balance sheet and improved liquidity position allows us to continue allocating capital towards developing innovative medicines that help patients overcome serious diseases.”
What the judges said:
“The treasury team issued euro debt for the first time in a decade to pay down dollar debt in a highly strategic, perfectly timed transaction to diversify the capital structure.”
Kevin Ciok
Managing Director, Global Head of Healthcare, Citi
Citi congratulates Keith Gaub and the Bristol Myers Squibb treasury team for their recognition in the Best Funding Solution category. This award reflects their sophisticated approach and effective execution in a dynamic financial market. Citi is honoured to have served as a trusted banking provider, contributing to this high-calibre funding solution through seamless collaboration. We anticipate continuing our support as the Bristol Myers Squibb treasury team pursues its strategic ambitions and builds upon this well-earned success.
in partnership with
Karim Saleh
Head of Healthcare IG Capital Markets, Goldman Sachs
Bristol Myers Squibb (BMS) achieved a milestone transaction, setting a benchmark for other large corporate borrowers looking to manage interest expense and balance sheet leverage. Keith and his team seized the opportunity to access the EUR market to fund a buy-back of existing USD debt while leveraging an accounting-friendly structure to optimise the Eurobond issuance. This required engaging additional stakeholders (both internal and external) compared to a traditional new issue and liability management exercise, as well as meticulous coordination across all parties. Congratulations to Keith and the BMS team on this successful funding solution.
in partnership with
Mai-Yin Picard
Managing Director – Investment Grade Finance, J.P. Morgan
To proactively manage FX-driven volatility and align liabilities with global earnings, Bristol Myers Squibb issued €5bn in Eurobonds to successfully retire existing high coupon dollar debt. Given previous balance sheet and hedging constraints, BMS masterfully established a euro financing entity, which took significant collaboration and effort from key internal and external stakeholders. This strategic cross-border execution reduced interest expense and leverage, diversified their investor base, and decreased refinancing risk in their key earnings troughs. We are incredibly proud to have supported BMS in this endeavor and, on behalf of J.P. Morgan, we congratulate them on this outstanding recognition.
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The Adam Smith Awards are the industry benchmark for best practice and innovation in corporate treasury. The 2026 awards attracted 635 nominations. To find out more please visit treasurytoday.com/adam-smith-awards
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