Summary
Becton, Dickinson and Company (BDX) announced on February 5, 2024, that it has entered into underwriting agreements to conduct two offerings of senior notes: one in U.S. dollars totaling $1.175 billion and another in Euros totaling €750 million. These offerings are expected to close around February 8, 2024, subject to standard conditions. The primary purpose of these debt offerings is to refinance existing debt. Specifically, the proceeds from the USD offering will be used to repay outstanding notes due in 2024 totaling approximately $1.873 billion (3.363% and 3.734% notes), while the proceeds from the EUR offering will be used to repay outstanding notes due in 2024 totaling approximately $144 million (3.875% notes) and €750 million (3.363% notes). The company may use net proceeds temporarily for general corporate purposes pending their final application.
Key Highlights
- 1BDX is raising a significant amount of capital through dual USD ($1.175 billion) and EUR (€750 million) senior notes offerings.
- 2The debt offerings are primarily aimed at refinancing existing BDX debt that matures in 2024.
- 3The 4.874% notes due 2029 and 5.110% notes due 2034 are being issued in the USD offering.
- 4The 3.519% notes due 2031 are being issued in the EUR offering.
- 5The offerings are expected to close on or about February 8, 2024, contingent on customary closing conditions.
- 6The refinancing strategy aims to manage BDX's debt maturity profile and potentially optimize interest expense.