Summary
Boston Scientific Corporation (BSX) announced on February 21, 2019, the pricing of a significant public offering of $4.3 billion in senior notes. This offering is structured with multiple tranches maturing between 2024 and 2049, featuring coupon rates ranging from 3.450% to 4.700%. The primary objectives for the use of these net proceeds are to finance a portion of its pending acquisition of BTG plc, redeem outstanding senior notes maturing in 2020, and repay outstanding amounts under its term loan facility, along with other short-term debt and associated fees.
Key Highlights
- 1Boston Scientific priced a $4.3 billion public offering of senior notes across five different maturities.
- 2The notes have varying interest rates, from 3.450% for the 2024 notes to 4.700% for the 2049 notes.
- 3Proceeds will partly fund the acquisition of BTG plc.
- 4A significant portion of the proceeds will be used to redeem outstanding 6.000% notes due January 2020 and 2.850% notes due May 2020.
- 5The offering also aims to repay amounts outstanding under the Company's $1.0 billion Term Loan facility maturing in August 2019.
- 6The offering is expected to close on February 25, 2019, subject to customary closing conditions.
- 7The company includes a standard cautionary statement regarding forward-looking statements and associated risks.
Frequently Asked Questions
The primary purposes are to finance a portion of the acquisition of BTG plc, redeem outstanding debt maturing in 2020, repay a significant term loan facility maturing in August 2019, and address other short-term debt and associated costs.
The company plans to redeem $850 million in 6.000% notes due January 2020 and $600 million in 2.850% notes due May 2020, totaling $1.45 billion in senior notes. Additionally, it will repay amounts outstanding under its $1.0 billion Term Loan facility.
This offering significantly increases Boston Scientific's long-term debt, primarily to fund a strategic acquisition and restructure its existing debt. The new notes have varying maturities and coupon rates, aiming to optimize the company's cost of capital and debt maturity profile.
The offering is expected to close on February 25, 2019, subject to the satisfaction of customary closing conditions.