8-KRegulation FDOther EventsExhibits & Filings

Medtronic plc 8-K Report, Regulation FD Disclosure (Jun 24, 2019)

Filed June 24, 2019For Securities:MDT

Summary

Medtronic plc announced the commencement of significant cash tender offers totaling up to $4.175 billion across various senior notes. These offers, conducted by its wholly-owned subsidiaries, are intended to refinance existing debt. The company anticipates these transactions will be leverage-neutral and expects a slight reduction in interest expense for fiscal year 2020, partially offset by increased U.S. taxes. The results of these tender offers, including the specific financial benefits, will not be fully determinable until early July 2019. Given that the transactions are expected to conclude late in Medtronic's first fiscal quarter of FY20, a material impact on Q1 FY20 financial results is not anticipated. Investors should monitor the outcome of these offers and their impact on the company's capital structure and future interest expenses.

Key Highlights

  • 1Medtronic is launching tender offers for up to $4.175 billion in aggregate principal amount of its outstanding senior notes.
  • 2The tender offers are being made by Medtronic's wholly-owned subsidiaries: Medtronic, Inc., Medtronic Global Holdings S.C.A., and Covidien International Finance S.A.
  • 3The company expects the debt refinancing to be leverage-neutral.
  • 4Medtronic anticipates lower interest expense in FY2020 as a result of these transactions, with a slight offset from increased U.S. taxes.
  • 5The full financial impact and results of the tender offers will be determined after July 10, 2019.
  • 6No material impact on Q1 FY20 financial results is expected due to the timing of the transactions.
  • 7The tender offers are subject to a debt financing condition.

Frequently Asked Questions

Medtronic is announcing the commencement of cash tender offers for up to $4.175 billion of its outstanding senior notes. This is a debt refinancing initiative.

Medtronic expects the transactions to be leverage-neutral and result in lower interest expense for fiscal year 2020, slightly offset by increased U.S. taxes. The full financial benefit will be known after July 10, 2019.

No, Medtronic does not expect a material impact on its Q1 FY20 financial results because the transactions are not expected to be completed until late in the first fiscal quarter.

The tender offers will expire at midnight on July 24, 2019, unless extended. Holders need to tender by July 9, 2019, to be eligible for an early tender payment. The results and associated financial benefits will not be determinable until at least July 10, 2019.