Summary
Boston Scientific Corporation (BSX) announced on December 10, 2009, the pricing of a $2 billion public offering of senior notes. This offering includes tranches maturing in 2015, 2020, and 2040 with varying interest rates. The company intends to use the net proceeds for general corporate purposes, with a specific plan to prepay a portion of its bank term loan due in April 2011. This financing move is significant as it will impact the company's debt structure and liquidity. Investors should note that the prepayment of the bank term loan is expected to result in an unanticipated pre-tax charge of approximately $30 million ($0.01 per share after tax) in the fourth quarter of 2009. This disclosure provides insight into the company's financial management strategies and potential short-term impacts on earnings.
Key Highlights
- 1Boston Scientific priced a $2 billion public offering of senior notes.
- 2The offering comprises $850 million in 4.50% notes due 2015, $850 million in 6.00% notes due 2020, and $300 million in 7.375% notes due 2040.
- 3The net proceeds are intended for general corporate purposes.
- 4A portion of the bank term loan due April 2011 will be prepaid using proceeds.
- 5An unanticipated pre-tax charge of approximately $30 million ($0.01 per share after tax) is expected in Q4 2009 due to the prepayment.
- 6The offering was expected to close on December 14, 2009.
- 7A press release dated December 10, 2009, detailing this event is filed as an exhibit.