Philips (NYSE: PHG) announced today that it priced a fixed-rate notes offering worth $546.2 million (€500 million).
Amsterdam-based Philips priced the notes (due 2031) under its European medium-term note (EMTN) program. The issue of the notes has a debt-neutral effect.
Philips said in a news release that it intends to use the net proceeds to repay debt. This debt comes from the funds utilized and outstanding under the credit facility entered into in the fourth quarter of 2022. Other uses of proceeds include general company purposes.
The company set the issue price for the notes at 99.741% with a coupon of 4.25%, resulting in a 4.289% yield. Philips said the offering was two times oversubscribed. It scheduled the settlement and issue of the notes for Sept. 8. The company also applied for the listing of the notes on the Official List of the Luxembourg Stock Exchange and to be traded on the regulated market of the Luxembourg Stock Exchange.