Covidien registers for debt sale to cover $2.3 billion ev3 buyout

June 21, 2010 by MassDevice staff

Covidien plc registers for an offering of an undisclosed amount of debt, aimed at raising cash to help pay for its $2.3 billion buyout of ev3 Inc.

COV logo

Covidien plc (NYSE:COV) registered for a debt offering with the Securities & Exchange Commission, aiming to drum up some cash to pay for its $2.3 billion acquisition of ev3 Inc (NSDQ:EVVV).

The Mansfield, Mass.-based medical products conglomerate filed shelf registration documents with the SEC indicating its plans to sell an unspecified amount of debt in $1,000 increments.

Earlier this month, Covidien announced its $22.50-per-share bid for Plymouth, Minn.-based ev3, saying it planned to pay for the buyout with cash, debt and a bridge loan. The debt notes will be issued in a series of three offerings, according to a regulatory filing, which did not specify the amount of the notes or their interest rates. Covidien had about $1.72 billion in cash and equivalents as of March 26, according to the filing.

Covidien is also on the hook for $250 million for the pending purchase of oximetry equipment maker Somanetics Corp. (NSDQ:SMTS).

Ev3 makes devices for treating the peripheral vasculature. Today the company announced that the Food & Drug Administration would put a pre-market approval application for one of those devices, the Pipeline brain aneurysm coil, on the fast track for review.