Summary
Medtronic plc (MDT) filed an 8-K on February 20, 2019, to disclose important updates concerning its financial performance and debt management. The company released its third-quarter fiscal year 2019 financial results and provided updated full-year fiscal 2019 guidance, indicating confidence in its ongoing financial trajectory. Crucially, Medtronic also announced the commencement of cash tender offers by its wholly-owned subsidiaries to repurchase various series of its outstanding senior notes.
Key Highlights
- 1Medtronic reported its Q3 FY19 financial results and updated its full-year FY19 guidance.
- 2The company is launching cash tender offers to repurchase several series of its outstanding senior notes.
- 3These tender offers are being conducted by Medtronic, Inc. and Covidien International Finance S.A.
- 4The offers include any and all of Medtronic's 2.500% Senior Notes due 2020 and Covidien's 4.20% Senior Notes due 2020.
- 5Additionally, tender offers are being made for up to $1.9 billion of specific longer-term senior notes from both subsidiaries.
- 6A sublimit of $75 million applies to the purchase of CIFSA's 6.550% Senior Notes due 2037.
- 7The tender offers are set to expire on March 19, 2019, with an early tender payment deadline of March 5, 2019.
Frequently Asked Questions
The primary reasons are to report Medtronic's financial results for the third quarter of fiscal year 2019, provide updated financial guidance for the full fiscal year 2019, and announce the commencement of cash tender offers for certain outstanding senior notes.
The filing indicates that Medtronic provided updated financial guidance for the full fiscal year 2019. The company stated that the outcome of the tender offers or any related debt financing is not expected to impact this updated guidance, suggesting confidence in their financial projections.
Medtronic is offering to repurchase its 2.500% Senior Notes due 2020 and Covidien International Finance S.A.'s (CIFSA) 4.20% Senior Notes due 2020 on an 'any and all' basis. It is also making offers for up to $1.9 billion combined principal amount of other specified senior notes due between 2021 and 2045, including CIFSA's 6.550% Senior Notes due 2037 with a sublimit of $75 million.
The tender offers are set to expire at 12:00 midnight, New York City time, on March 19, 2019. Investors who validly tender their notes and do not withdraw them by 5:00 p.m. New York City time on March 5, 2019, will be eligible to receive an early tender payment in addition to the applicable tender offer consideration.