Summary
Medtronic plc filed an 8-K on March 7, 2019, detailing a significant notes offering and related refinancing activities. The company's subsidiary, Medtronic Global Holdings S.C.A. (Medtronic Luxco), successfully issued approximately €6.9 billion in aggregate principal amount of senior notes. These notes consist of both floating rate and fixed rate senior notes with various maturity dates ranging from 2021 to 2039, carrying interest rates from 0.000% to 2.250% for fixed rate notes and a EURIBOR plus 0.200% rate for the floating rate notes. The primary purpose of this offering was to fund tender offers for outstanding notes issued by Medtronic, Inc. and Covidien International Finance S.A., as well as to redeem other outstanding notes. This strategic move aims to refinance existing debt, optimize the company's debt maturity profile, and potentially reduce interest expenses. The company has applied to list these new notes on the New York Stock Exchange.
Key Highlights
- 1Medtronic Luxco issued €6.9 billion in aggregate principal amount of senior notes across multiple series (Floating Rate Notes due 2021 and Fixed Rate Notes due 2021, 2023, 2027, 2031, and 2039).
- 2The offering includes notes with interest rates ranging from 0.000% to 2.250% for fixed-rate notes and a floating rate tied to EURIBOR plus 0.200%.
- 3Proceeds will be used to fund tender offers for existing Medtronic, Inc. and Covidien International Finance S.A. notes and to redeem other outstanding notes.
- 4The company aims to refinance existing debt, extend its maturity profile, and manage its capital structure.
- 5Medtronic plc and Medtronic, Inc. have fully and unconditionally guaranteed the new notes.
- 6The new notes are general unsecured senior obligations of Medtronic Luxco and will be listed on the New York Stock Exchange.
- 7The company stated that these transactions are not expected to impact its previously issued financial guidance for FY2019 or FY2020 earnings per share estimates.