Boston Scientific
(NYSE: BSX)
announced that it priced an offering worth nearly $2.2 billion (€2 billion) in senior notes.
American Medical Systems Europe B.V., Boston Scientific’s wholly-owned finance subsidiary, priced the public offering. It includes €750,000,000 aggregate principal amount of 3.375% notes due in 2029 and €1,250,000,000 aggregate principal amount of 3.500% notes due in 2032. Notes will be fully and unconditionally guaranteed by the company.
The company intends to put the net proceeds toward its $3.7 billion acquisition of Axonics Modulation Technologies. Boston Scientific plans to add the funds to borrowings under its commercial paper program and cash on hand in financing the deal.
Axonics develops neuromodulation systems for treating urinary and bowel dysfunction. Its fourth-generation R20 rechargeable sacral neuromodulation (SNM) system received FDA approval around a year ago. Axonics also launched the recharge-free F15 SNM system in mid-2022. Boston Scientific expects to complete that transaction in the first half of this year.
Boston Scientific expects its offering to close on Feb. 27, subject to customary conditions. Along with helping to fund the Axonics buy, it expects the funds to go toward related fees and epenses.
Other uses include funding the repayment at maturity of its 3.450% senior notes due in March 2024. It also intends to pay accrued nad unpaid interest with respect to such notes. Finally, Boston Scientific may use funds from this offering for general corporate purposes, according to a news release.
