8-KMaterial AgreementsFinancial EventsOther Events+1

BECTON DICKINSON & CO 8-K Report, Material Agreement (Aug 13, 2021)

Filed August 13, 2021For Securities:BDX

Summary

Becton, Dickinson and Company (BDX) announced significant financing activities through an 8-K filing on August 13, 2021. The company, through its indirect subsidiary Becton Dickinson Euro Finance S.à r.l., issued €1.8 billion in notes across two series: €900 million of 0.334% Notes due 2028 and €900 million of 1.336% Notes due 2041. Concurrently, BDX itself issued €900 million in notes: €400 million of 0.000% Notes due 2023 and €500 million of 0.034% Notes due 2025. The aggregate principal amount of notes issued by both entities totals €2.7 billion. The primary purpose of these issuances was to fund the company's previously announced tender offers to repurchase its outstanding senior notes, specifically the 2.894% notes due 2022, 3.300% notes due 2023, and certain 2024 maturity notes. Additionally, BDX initiated the full redemption of its outstanding 2.894% senior notes due June 6, 2022 ($1.535 billion) and 3.300% senior notes due March 1, 2023 ($293.85 million), with an expected redemption date of September 13, 2021. This strategic move aims to manage its debt profile and potentially reduce future interest expenses.

Key Highlights

  • 1Becton Dickinson Euro Finance S.à r.l. issued €1.8 billion in notes (0.334% due 2028 and 1.336% due 2041).
  • 2Becton, Dickinson and Company (BDX) issued €900 million in notes (0.000% due 2023 and 0.034% due 2025).
  • 3Total new debt issued by BDX and its subsidiary amounts to €2.7 billion.
  • 4Proceeds are intended to fund tender offers for existing senior notes and redeem specific maturing notes.
  • 5BDX initiated the full redemption of its $1.535 billion in 2.894% senior notes due 2022 and $293.85 million in 3.300% senior notes due 2023.
  • 6The redemption of existing notes is scheduled for September 13, 2021.
  • 7This issuance and redemption activity suggests proactive debt management and potential refinancing.

Frequently Asked Questions

BDX is proactively managing its debt structure. The proceeds from the new note issuances are intended to fund the repurchase of existing senior notes through tender offers and to redeem specific outstanding notes. This strategy may aim to lower interest expenses, extend debt maturities, or optimize the company's capital structure.

Becton Dickinson Euro Finance S.à r.l. issued €900 million of 0.334% Notes due August 13, 2028, and €900 million of 1.336% Notes due August 13, 2041. These notes are fully and unconditionally guaranteed on a senior unsecured basis by Becton, Dickinson and Company.

Becton, Dickinson and Company itself issued €400 million of 0.000% Notes due August 13, 2023, and €500 million of 0.034% Notes due August 13, 2025. These notes are listed on the New York Stock Exchange.

BDX is redeeming its 2.894% senior notes due June 6, 2022, and 3.300% senior notes due March 1, 2023, in full. Additionally, the company is conducting tender offers to repurchase its 2.894% senior notes due 2022, 3.300% senior notes due 2023, and certain 3.875% senior notes due 2024, 3.734% senior notes due 2024, and 3.363% senior notes due 2024.