Medtronic
(NYSE: MDT)
announced today that it has closed a public offering of €3.0 billion of senior notes.
The offering’s net proceeds are roughly €2.97 billion (equal to about $3.21 billion) after deducting underwriting discounts and estimated expenses. Medtronic plans to use the funds for general corporate purposes, which may include repaying outstanding commercial paper and other indebtedness.
The offering was made by means of a prospectus dated March 3, 2023.
The notes offering comes as the world’s largest medtech company engages in portfolio management moves such as shuttering Medtronic’s ventilators business, being more disciplined about headcount and expenses, and using automation and digitization more. At the same time, Medtronic is making strategic investments in research and development to boost future growth.
“Our global workforce is embracing a performance-driven culture that is translating into durable results,” CEO Geoff Martha said during the company’s fourth-quarter earnings call last month.
“Our global workforce is embracing a performance-driven culture that is translating into durable results,” Martha said.
The newly closed offering included a €850,000,000 principal amount of 3.650% senior notes due 2029, €850,000,000 principal amount of 3.875% senior notes due 2036, €600,000,000 principal amount of 4.150% senior notes due 2043, and €700,000,000 principal amount of 4.150% senior notes due 2053.
Citigroup Global Markets, J.P. Morgan Securities, Merrill Lynch International, and Mizuho International were the offering’s joint book-running managers. Barclays Bank, Deutsche Bank’s London Branch, Goldman Sachs & Co., and HSBC Bank were the senior co-managers, and Drexel Hamilton, Guzman & Co., Independence Point Securities, and Siebert Williams Shank & Co. were the co-managers.
