8-KOther EventsExhibits & Filings

BOSTON SCIENTIFIC CORP 8-K Report, Corporate Update (May 15, 2020)

Filed May 15, 2020For Securities:BSX

Summary

Boston Scientific Corporation (BSX) has announced the pricing of a significant public offering of senior notes totaling $1.7 billion. This offering includes $500 million in 1.900% notes due 2025 and $1.2 billion in 2.650% notes due 2030. The company plans to utilize the net proceeds to proactively manage its debt obligations, specifically by refinancing existing borrowings under its revolving credit facility and portions of its term loan credit facilities maturing in 2021. This move demonstrates Boston Scientific's strategic approach to optimizing its capital structure and managing its debt maturity profile. By issuing new, longer-term debt, the company aims to reduce its immediate refinancing risk, potentially lower its overall interest expense, and enhance its financial flexibility. Investors should view this as a proactive measure to strengthen the company's balance sheet in preparation for future growth and operational needs.

Key Highlights

  • 1Boston Scientific priced a $1.7 billion public offering of senior notes.
  • 2The offering includes $500 million of 1.900% notes due 2025.
  • 3The offering also includes $1.2 billion of 2.650% notes due 2030.
  • 4Proceeds will be used to refinance $450 million of revolving credit facility borrowings.
  • 5Proceeds will also refinance $750 million and $500 million from term loan credit facilities maturing in 2021.
  • 6The offering is expected to close on May 18, 2020, subject to customary conditions.

Frequently Asked Questions

Boston Scientific is issuing new senior notes to refinance existing debt. Specifically, they plan to use the proceeds to pay down borrowings under their revolving credit facility and portions of their term loan credit facilities that are maturing in 2021. This is a strategic move to manage their debt maturity profile and potentially optimize their interest expense.

The company is raising a total of $1.7 billion. This consists of $500 million in aggregate principal amount of 1.900% notes due 2025 and $1.2 billion in aggregate principal amount of 2.650% notes due 2030.

The offering is expected to close on May 18, 2020, provided that all customary closing conditions are met.

By refinancing existing debt, the company is managing its existing leverage. The specific impact on overall financial leverage will depend on the terms of the new debt relative to the old debt and how the company plans to deploy capital going forward. However, this move indicates a proactive approach to debt management.