8-KOther EventsExhibits & Filings

BECTON DICKINSON & CO 8-K Report, Corporate Update (Feb 10, 2021)

Filed February 10, 2021For Securities:BDX

Summary

Becton, Dickinson and Company (BD) announced two significant debt offerings in filings dated February 9, 2021, related to its February 7, 2021, event date. The company is issuing $1.0 billion in U.S. Dollar Notes due 2031 with a 1.957% interest rate and €600 million in Euro-denominated Notes due 2036 with a 1.213% interest rate. The primary purpose of these offerings is to refinance existing debt, specifically the $1.0 billion of 3.125% Notes due 2021 and €600 million of 0.174% Euro Notes due 2021. These transactions indicate proactive debt management by BDX, aiming to lower its overall interest expense by replacing higher-cost debt with new, lower-cost debt. The offerings are expected to close on or around February 11-12, 2021, subject to standard closing conditions. Investors should note the company's strategy to optimize its capital structure and reduce future interest payments.

Key Highlights

  • 1BDX is raising $1.0 billion in new U.S. Dollar Notes due 2031 at a 1.957% interest rate.
  • 2BDX is also issuing €600 million in Euro-denominated Notes due 2036 at a 1.213% interest rate.
  • 3The proceeds from these offerings will be used to repay $1.0 billion of 3.125% Notes due 2021.
  • 4The proceeds will also be used to repay €600 million of 0.174% Euro Notes due 2021.
  • 5This move represents a refinancing strategy to lower BDX's overall interest expense.
  • 6The U.S. Dollar Notes offering is expected to close around February 11, 2021.
  • 7The Euro-denominated Notes offering is expected to close around February 12, 2021.

Frequently Asked Questions

The primary reason for the new debt offerings is to refinance existing, higher-interest debt. BDX is issuing new notes at lower interest rates to replace its 3.125% U.S. Dollar Notes due 2021 and its 0.174% Euro Notes due 2021, thereby reducing its future interest expenses.

BDX is raising a total of approximately $1.12 billion (converted from EUR 600 million using approximate exchange rates at the time). Specifically, it's raising $1.0 billion in U.S. Dollar Notes and €600 million in Euro Notes. The combined proceeds are intended to repay $1.0 billion of maturing U.S. Dollar Notes and €600 million of maturing Euro Notes.

The new U.S. Dollar Notes due 2031 carry a 1.957% interest rate, replacing the 3.125% Notes due 2021. The new Euro Notes due 2036 have a 1.213% interest rate, replacing the 0.174% Euro Notes due 2021. In both cases, BDX is securing significantly lower interest rates.

The U.S. Dollar Notes offering is expected to be completed on or about February 11, 2021, while the Euro-denominated Notes offering is expected to be completed on or about February 12, 2021, both subject to customary closing conditions.