Boston Scientific Corp. (NYSE:BSX) capitalized on its recent credit rating upgrade, completing a public offering of over $2 billion in senior unsecured notes.
Last week, Standard & Poor’s Ratings Services raised BSX’s credit rating out of junk bond status, freeing the company to raise additional capital, an opportunity it quickly pounced on.
The Natick, Mass.-based medical device colossus said it closed the offering today, consisting of $850 million of 4.5 percent notes due January 2015, $850 million of 6.00 percent notes due January 2020 and $300 million of 7.375 percent notes due January 2040.
BSX will use some of the proceeds to pay down a portion of its massive debt obligations.
Last spring, MassDevice reported that the company had more than $3.75 billion in loans and senior notes due in April, 2011, about half of its total long-term debt load. Among those obligations was $850 million in senior notes, $900 million on a 4 percent unsecured loan from Abbott (NYSE:ABT) and a $2 billion payment on a term loan.
The company will use the offering to pay off that $2 billion term loan, meaning a payment of $1.7 billion is still due in April, 2011, according to regulatory filings.
Shares of BSX stock are up roughly 4 percent since the company announced its refinancing plans.