Summary
Becton, Dickinson and Company (BDX) announced on November 3, 2011, that it entered into an underwriting agreement to issue and sell a significant amount of debt. Specifically, the company is issuing $500.0 million in aggregate principal amount of 1.750% notes due November 8, 2016, and $1,000.0 million in aggregate principal amount of 3.125% notes due November 8, 2021, for a total of $1.5 billion in new debt. This offering was conducted under the company's existing shelf registration statement, indicating a well-established process for raising capital. This action suggests BDX is likely seeking to finance ongoing operations, potential acquisitions, or refinance existing debt with these new, longer-term obligations. Investors should monitor the use of proceeds and the impact on the company's leverage ratios.
Key Highlights
- 1BDX entered into an underwriting agreement on November 3, 2011, for the issuance of new debt.
- 2The company is issuing $500.0 million of 1.750% notes due November 8, 2016.
- 3The company is also issuing $1,000.0 million of 3.125% notes due November 8, 2021.
- 4The total aggregate principal amount of the notes issued is $1.5 billion.
- 5The offering was made under the company's existing automatic shelf registration statement filed on Form S-3.
- 6The notes were issued pursuant to an indenture dated March 1, 1997, with The Bank of New York Mellon Trust Company, N.A. as trustee.
- 7Goldman Sachs & Co. and Morgan Stanley & Co. LLC acted as representatives for the underwriters.