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.