Medtronic (NYSE:MDT) yesterday raised the top end of a debt tender to more than $4 billion, covering the outlay with a €5 billion senior notes offering.
Earlier this week the Fridley, Minn.-based medical device giant floated a pair of tender offers for senior notes, one for up to $1.18 billion and a second for up to $3.0 billion. Yesterday Medtronic said it raised the high end of the second offer to $4.35 billion.
The tender offers are contingent on the company closing a financing deal sufficient to cover its outlay on the tenders, which Medtronic achieved via a separately announced senior notes offering worth €5.0 million ($5.68 billion). That offering, which is slated to close July 2, consists of the following:
|€250 million||floating-rate senior notes due 2021|
|€750 million||0.0% senior notes due 2022|
|€1.0 billion||0.25% senior notes due 2025|
|€1.0 billion||1.0% senior notes due 2031|
|€1.0 billion||1.5% senior notes due 2039|
|€1.0 billion||1.75% senior notes due 2049|
Medtronic said the floating-rate notes due 2021 add on to the €500 million worth of those notes it floated in March. Any proceeds left over after paying for the U.S. debt tenders are slated for paying down other debt and general corporate purposes, Medtronic said.
Barclays Capital, BofA Merrill Lynch and Goldman Sachs are dealer managers for the tender offers, with Global Bondholder Services as information & tender agent. The joint book-runners for the senior notes offering are Barclays Bank, Goldman Sachs and Merrill Lynch International, Medtronic said.
($1 = €0.880200)