Summary
Becton, Dickinson and Company (BDX) announced on February 6, 2023, that it has entered into underwriting agreements for two significant debt offerings. The company will issue $800 million in 4.693% Notes due 2028, and its subsidiary, Becton Dickinson Euro Finance S.à r.l., will issue €800 million in 3.553% Notes due 2029. These offerings are expected to close around February 13, 2023. The primary purpose of these offerings is to refinance existing debt, specifically to repay outstanding principal amounts for BDX's 1.401% and 0.000% Notes due 2023, as well as Becton Finance's 0.632% Notes due 2023. Any remaining proceeds will be allocated to general corporate purposes. This move appears to be a strategic debt management initiative aimed at optimizing the company's debt structure and potentially lowering interest expenses over the medium to long term.
Key Highlights
- 1BDX is raising $800 million through the issuance of 4.693% Notes due 2028.
- 2BDX's subsidiary, Becton Finance, is raising €800 million through the issuance of 3.553% Notes due 2029.
- 3The primary use of proceeds is to repay maturing debt in 2023, specifically €300 million of 1.401% Notes and €400 million of 0.000% Notes for BDX, and €800 million of 0.632% Notes for Becton Finance.
- 4The offerings are expected to close on or about February 13, 2023, subject to customary closing conditions.
- 5Remaining proceeds after debt repayment will be used for general corporate purposes.
- 6The debt issuances were facilitated through underwriting agreements with major financial institutions including Barclays, Citigroup, and Goldman Sachs.