Summary
Boston Scientific Corporation (BSX) filed an 8-K on June 9, 2006, to announce the successful completion of a significant debt offering. The company issued $1.2 billion in aggregate principal amount of notes, split equally between $600 million of 6.00% Notes due 2011 and $600 million of 6.40% Notes due 2016. This offering was conducted under the company's existing shelf registration statement and involved a definitive Underwriting Agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated and Banc of America Securities LLC as representatives for the underwriters. The proceeds from this debt issuance are earmarked for general corporate purposes. Specifically, the company intends to use these funds to cover taxes associated with Guidant Corporation's asset sale to Abbott Laboratories and to repay approximately $350 million of existing borrowings under its U.S. trade receivables secured credit facility. This move signals a strategic financial maneuver to manage upcoming obligations and optimize its capital structure.
Key Highlights
- 1Boston Scientific completed a $1.2 billion debt offering consisting of $600 million in 6.00% Notes due 2011 and $600 million in 6.40% Notes due 2016.
- 2The offering was conducted under the company's existing shelf registration statement.
- 3Proceeds will be used for general corporate purposes.
- 4A significant portion of the proceeds will fund taxes related to the Guidant Corporation asset sale to Abbott Laboratories.
- 5The company plans to repay approximately $350 million in outstanding borrowings under its U.S. trade receivables secured credit facility.
- 6The offering involved a material definitive agreement with underwriters, including Merrill Lynch and Banc of America Securities.
- 7An Indenture was entered into with JPMorgan Chase Bank, N.A. as trustee for the notes.