The 7-tranche offering of senior notes, expected to close Dec. 10, start coming due in 2020, with the final tranche due March 15, 2045, Medtronic said. The proceeds will be used to fund the cash portion of the Covidien buy, the Fridley, Minn.-based company said.
Terms of the deal, expected to close in early 2015, call for Medtronic to pay $93.22 per share for Covidien. Each COV share will be converted to the right for $35.19 in cash and 0.956 MDT shares.
Here’s how the senior notes, due March 15 of their term date, break down by tranche:
- $500 million at a floating rate (3-month LIBOR +0.8%), due 2020
- $1 billion at 1.5%, due 2018
- $2.5 billion at 2.5%, due 2020
- $2.5 billion at 3.15%, due 2022
- $4.0 billion at 3.5%, due 2025
- $2.5 billion at 4.375%, due 2035
- $4.0 billion at 4.625% due 2045
Medtronic said the offering is not contingent on a successful Covidien acquisition, but pledged that if it hasn’t struck a deal by June 15, 2015, it will be required to redeem all of the floating-rate, 2.5%, 3.15%, 3.5% and 4.375% notes at 101% of their aggregate principal amount, plus interest.