8-KMaterial AgreementsFinancial EventsExhibits & Filings

BECTON DICKINSON & CO 8-K Report, Material Agreement (Mar 10, 2023)

Filed March 10, 2023For Securities:BDX

Summary

Becton Dickinson & Co (BDX) announced on March 9, 2023, significant updates to its commercial paper programs. The company entered into an omnibus amendment to its U.S. Commercial Paper Program, increasing the maximum available amount to $2.75 billion. Concurrently, BDX established a new Multicurrency Euro Commercial Paper Program (ECP Program) with a similar aggregate limit when combined with the U.S. program. These actions indicate a strategic move by Becton Dickinson to enhance its short-term financing capabilities and maintain financial flexibility. The proceeds from the ECP Notes are intended for general corporate purposes, including working capital, potential acquisitions, share repurchases, and debt repayments. The company plans to use its revolving credit facility as a liquidity backstop for the ECP Program, suggesting a well-structured approach to managing its short-term debt obligations.

Key Highlights

  • 1BDX increased the maximum amount available under its U.S. Commercial Paper Program to $2.75 billion.
  • 2BDX established a new Multicurrency Euro Commercial Paper Program (ECP Program).
  • 3The combined maximum aggregate amount for both U.S. and ECP programs is capped at $2.75 billion.
  • 4Proceeds from the ECP Notes will be used for working capital, general corporate purposes, acquisitions, share repurchases, and debt repayments.
  • 5The ECP Program allows issuance in various currencies including EUR, USD, JPY, GBP, CHF, CAD, and others.
  • 6ECP Notes will have maturities ranging from one day to 183 days.
  • 7BDX intends to use its revolving credit facility as a liquidity backstop for the ECP Program.

Frequently Asked Questions

The primary purpose is to enhance Becton Dickinson's short-term financing flexibility and access to capital markets. The increased capacity and establishment of a multicurrency program allow for greater adaptability in managing working capital, funding potential strategic initiatives like acquisitions or share repurchases, and refinancing existing debt.

The total aggregate maximum amount outstanding under both the U.S. Commercial Paper Program and the Multicurrency Euro Commercial Paper Program is $2.75 billion.

Becton Dickinson plans to utilize its existing revolving credit facility as a liquidity backstop for borrowings under the ECP Program, ensuring that it has a reliable source of funds to meet its obligations.

No, the ECP Notes have not been and will not be registered under the Securities Act of 1933 or state securities laws. They are being offered and sold pursuant to exemptions from registration requirements.