The Fridley, Minn.-based company said it expects to redeem $400 million in 5.6% senior notes due 2019 and $765.6 million in 4.45% senior notes due 2020, which a redemption date of April 27, 2018.
Medtronic said that it “believes the redemption represents an attractive opportunity to deploy its capital efficiently, given the economic benefit of lower net interest expense and lower average cost of debt outstanding,” according to an SEC filing.
The repurchasing is in addition to the company’s planned repurchases to offset employee compensation dilution, Medtronic said, and will be made pursuant to the company’s existing $5 billion share repurchase program.
Funding for the repurchasing efforts will be funded with cash and cash equivalents on hand, Medtronic said.
Last week, Medtronic said it released results from two real-world analyses of its AdaptivCRT algorithm, touting that its use was linked to a reduction in atrial fibrillation episodes and higher patient activity levels.