Summary
Becton, Dickinson and Company (BDX) announced a significant debt offering of $6.2 billion across multiple note issuances. The company is issuing Floating Rate Notes due 2016, and Senior Notes with varying maturities in 2017, 2019, 2024, and 2044. The primary purpose of this substantial capital raise is to finance the acquisition of CareFusion Corporation, a major strategic move for BDX. This debt offering, along with other planned financing activities including commercial paper, a new term loan, and existing cash, underscores the scale and financial commitment required for the CareFusion acquisition. Investors should note that the successful completion of this offering is crucial for BDX's ability to close the acquisition, which is expected around December 15, 2014. The details of the underwriting agreement with Goldman Sachs and J.P. Morgan are provided, highlighting the structured approach to this financing.
Key Highlights
- 1BDX is conducting a $6.2 billion debt offering across five different note issuances.
- 2The offering includes Floating Rate Notes due 2016 and Senior Notes with maturities ranging from 2017 to 2044.
- 3The primary use of proceeds is to finance the acquisition of CareFusion Corporation.
- 4Additional financing for the acquisition will come from commercial paper, a new term loan facility, and cash on hand.
- 5The company expects the debt offering to be completed around December 15, 2014, subject to closing conditions.
- 6Goldman, Sachs & Co. and J.P. Morgan Securities LLC are acting as lead underwriters for the offering.