Summary
Becton, Dickinson and Company (BD) announced on January 5, 2015, the establishment of a commercial paper program allowing for the issuance of up to $1 billion in short-term, unsecured notes. These notes will mature within 397 days and are intended for general corporate purposes. A significant stated use of proceeds is to finance BD's pending acquisition of CareFusion Corporation, as well as to cover related fees and expenses. This initiative highlights BD's strategy to secure short-term funding to support a major strategic transaction, indicating a period of significant operational and financial activity for the company. Investors should monitor the progress and impact of the CareFusion acquisition as a key driver of future performance.
Key Highlights
- 1Establishment of a $1 billion commercial paper program for short-term unsecured debt issuance.
- 2Proceeds intended for general corporate purposes, including financing the pending acquisition of CareFusion Corporation.
- 3Notes will have maturities of up to 397 days.
- 4The program is designed to provide flexible funding for immediate needs.
- 5The commercial paper notes will rank at least pari passu with other unsecured and unsubordinated indebtedness of BD.
- 6The offering is made under an exemption from registration pursuant to Section 4(a)(2) of the Securities Act of 1933.
Frequently Asked Questions
Becton Dickinson (BD) has established a commercial paper program that allows it to issue short-term, unsecured promissory notes (commercial paper) up to an aggregate principal amount of $1 billion. These notes are intended to provide short-term funding for the company's general corporate purposes.
The net proceeds from the issuance of these commercial paper notes are primarily intended to finance BD's pending acquisition of CareFusion Corporation and to pay related fees and expenses. They can also be used for other general corporate purposes.
The commercial paper notes will have maturities of up to 397 days from the date of issue. They are unsecured and unsubordinated debt obligations of BD, meaning they rank equally with other similar debt.
No, the notes have not been registered under the Securities Act of 1933 or state securities laws. They are being offered under an exemption from registration, specifically Section 4(a)(2) of the Securities Act, which is typical for commercial paper programs aimed at sophisticated investors.