Summary
Becton, Dickinson and Company (BD) announced a significant debt offering via its subsidiary, Becton Dickinson Euro Finance S.à r.l., to raise €2.0 billion by issuing notes due in 2021, 2023, and 2026. These notes carry relatively low interest rates, ranging from 0.174% to 1.208%. The primary purpose of this offering is to refinance existing debt, specifically to repay maturing €1.0 billion of 0.368% Notes due 2019 and to fund tender offers for several other outstanding note series with higher interest rates. This strategic move aims to lower BD's overall interest expense and optimize its capital structure.
Key Highlights
- 1BD subsidiary issued €2.0 billion in new notes across three maturities (2021, 2023, 2026) with low coupon rates.
- 2The offering includes €600 million of 0.174% Notes due 2021, €800 million of 0.632% Notes due 2023, and €600 million of 1.208% Notes due 2026.
- 3Proceeds will be used to repay €1.0 billion of 0.368% Notes due 2019 at maturity.
- 4The offering will also fund tender offers for several other existing BD notes, indicating a proactive debt management strategy.
- 5The new notes are fully and unconditionally guaranteed on a senior unsecured basis by Becton, Dickinson and Company.
- 6The offering is expected to close around June 4, 2019, subject to customary conditions.
Frequently Asked Questions
The primary purpose of the debt issuance is to refinance existing debt. Becton Dickinson (BD) plans to use the proceeds to repay its €1.0 billion of 0.368% Notes due 2019 and to fund the repurchase of other outstanding notes through tender offers, thereby optimizing its debt profile and potentially lowering interest expenses.
BDX, through its subsidiary, raised a total of €2.0 billion by issuing three series of notes: €600 million of 0.174% Notes due 2021, €800 million of 0.632% Notes due 2023, and €600 million of 1.208% Notes due 2026. These notes carry relatively low interest rates.
The filing does not directly address the potential impact on BDX's credit rating. However, refinancing maturing debt and potentially lowering overall interest costs is generally viewed positively by credit rating agencies, assuming the company's overall financial health remains strong.
Becton Dickinson expects the offering to be completed on or about June 4, 2019, subject to the satisfaction of customary closing conditions.