What was the primary purpose of the $4.3 billion senior notes offering?

The primary purpose of the senior notes offering was to finance a portion of the previously announced acquisition of BTG plc. Additionally, the proceeds were designated for redeeming outstanding 2020 notes, repaying a $1.000 billion Term Loan facility, and addressing other short-term debt and related expenses.

What happens to the 2024 and 2026 notes if the BTG acquisition does not close?

If the BTG acquisition does not become effective by the 'Long Stop Date' (August 20, 2019, or an extended date), or if the acquisition lapses, is withdrawn, or terminates before closing, Boston Scientific is required to redeem all outstanding 2024 and 2026 Notes at a special mandatory redemption price of 101% of their principal amount, plus accrued interest.

Which existing debt did Boston Scientific redeem or repay with the proceeds from the new notes?

Boston Scientific announced the redemption of its 6.000% notes due January 2020 (aggregate principal $850 million) and its 2.850% notes due May 2020 (aggregate principal $600 million). Additionally, the company prepaid and terminated its $1.000 billion Term Loan facility that was maturing in August 2019.

What is the significance of terminating the Bridge Credit Agreement?

The termination of the Bridge Credit Agreement, which was originally established to finance the Proposed BTG Acquisition, signifies that the company has secured permanent financing for the acquisition through the new senior notes offering and has no further need for the interim financing facility.

BSX 8-K: Material Agreements & Regulation FD

Summary

Boston Scientific Corporation (BSX) filed an 8-K on February 25, 2019, detailing significant financing activities related to its previously announced acquisition of BTG plc. The company successfully closed an offering of $4.3 billion in aggregate principal amount of senior notes across various maturities ranging from 2024 to 2049. The net proceeds from this offering, approximately $4.241 billion after expenses, are earmarked for financing a portion of the BTG acquisition, redeeming outstanding 2020 notes, repaying a term loan facility, and covering other short-term debt and expenses. This offering effectively refinanced the company's debt structure and secured funding for a key strategic acquisition. In conjunction with the notes offering, BSX also terminated its bridge credit facility that was intended to finance the BTG acquisition. Furthermore, the company announced the redemption of its outstanding 6.000% notes due January 2020 and 2.850% notes due May 2020. These actions collectively demonstrate a strategic financial maneuver to fund growth initiatives while optimizing the company's debt profile.

Key Highlights

1Boston Scientific (BSX) closed a $4.3 billion offering of senior notes with maturities ranging from 2024 to 2049.
2Net proceeds from the note offering were approximately $4.241 billion after deducting underwriting discounts and offering expenses.
3Proceeds are intended to finance a portion of the BTG plc acquisition, redeem existing debt, and repay credit facilities.
4The company issued $850 million each of 3.450% Senior Notes due 2024 and 3.750% Senior Notes due 2026.
5Additionally, BSX issued $850 million of 4.000% Senior Notes due 2029, $750 million of 4.550% Senior Notes due 2039, and $1 billion of 4.700% Senior Notes due 2049.
6BSX announced the redemption of its 6.000% notes due January 2020 ($850 million principal) and 2.850% notes due May 2020 ($600 million principal).
7The company terminated its Bridge Credit Agreement and prepaid its $1 billion Term Loan facility upon the closing of the new notes offering.

BOSTON SCIENTIFIC CORP 8-K Report, Material Agreement (Feb 25, 2019)

Summary

Key Highlights

Frequently Asked Questions