Medtronic readies $4B debt tender

Medtronic (NYSE:MDT) said today that it’s aiming to redeem more than $4 billion in senior debt in a pair of tender offers.

The Fridley, Minn.-based medical device titan said the first tender is for up to $1.18 billion, consisting of $500 million in 4.125% senior notes due 2021 and $675 million in 3.125% senior notes due 2022. The second offer is for a total of up to $3.0 billion, for 14 sets of senior notes, Medtronic said:

$182.9 million	6.50% senior notes due 2039
$305.9 million	5.550% senior notes due 2040
$1.96 billion	4.625% senior notes due 2045
$176.6 million	4.625% senior notes due 2044
$128.7 million	4.50% senior notes due 2042
$2.38 billion	4.375% senior notes due 2035
$325.0 million	4.0% senior notes due 2043
$4.0 billion	3.50% senior notes due 2025
$850.0 million	3.625% senior notes due 2024
$283.5 million	6.550% senior notes due 2037
$850.0 million	3.350% senior notes due 2027
$2.50 billion	3.150% senior notes due 2022
$650.0 million	3.20% senior notes due 2022
$309.5 million	2.950% senior notes due 2023

The tenders are slated to close tonight at midnight Eastern time, with an early tender date of July 10 and a settlement date of July 12. Notes tendered after that are slated for a settlement date of July 26, Medtronic said.

Taken together the offers are expected to “effectively be leverage-neutral,” with lower fiscal 2020 interest “slightly offset” by higher U.S. taxes, the company said.

“Given that these transactions are not expected to be completed until late in the company’s first fiscal quarter, the company is not expecting a material impact from these transactions to its Q1 FY20 financial results,” Medtronic said.