Medtronic Announces $2B Debt Offering
Medtronic announced pricing for a series of senior note offerings on Tuesday with the aim of bringing in investments totaling $2 billion.
The world’s largest medtech company, which keeps its U.S. operational headquarters in Fridley, said the offerings would take place this month and are expected to close March 28.
Through its subsidiary Medtronic Global Holdings, otherwise known as Medtronic Luxco, the company is offering $1 billion in 1.7 percent senior notes, which is essentially a loan that is given precedence over other forms of debt during cases of bankruptcy. Investors who purchase the 1.7 percent senior notes will have an expected return on investment by 2019.
The subsidiary is also offering $850 million in 3.35 percent senior notes with a 2027 due date.
Additionally, Medtronic itself is offering $150 million in 4.625 percent senior notes due by 2045.
The funds will go toward “general corporate purposes,” Medtronic said.
The medtech company has, as of January 27, approximately $6.2 billion in debt obligations and $25.9 billion in long-term debt outstanding, according to recent SEC filings.
Citigroup Global Markets, Goldman Sachs, Morgan Stanley and Wells Fargo Securities will all act as joint book-running managers for the offerings. BNP Paribas Securities, Deutsche Bank Securities, HSBC Securities and Mizuho Securities USA are listed as co-managers.
Medtronic stock is up about 30 cents from its Tuesday close of $80.69.