Summary
Medtronic plc (MDT) announced the closing of a significant debt offering through its indirect wholly owned subsidiary, Medtronic Global Holdings S.C.A. (Medtronic Luxco). The company successfully issued €3.5 billion in aggregate principal amount of senior notes across four tranches with varying maturities and interest rates: 2.625% Senior Notes due 2025, 3.000% Senior Notes due 2028, 3.125% Senior Notes due 2031, and 3.375% Senior Notes due 2034. These notes are fully and unconditionally guaranteed by Medtronic plc and Medtronic, Inc. The primary purpose of this offering is to refinance existing debt, specifically Medtronic Luxco's outstanding 0.00% Senior Notes due 2022 and its 0.375% and 0.00% Senior Notes due 2023, which are nearing maturity. The net proceeds, estimated at approximately €3.47 billion after expenses, will also be allocated for general corporate purposes. Medtronic has reiterated that its fiscal year 2023 adjusted earnings per share guidance, previously issued, already accounts for the financial impact of this offering and its use of proceeds. The company has applied to list these new notes on the New York Stock Exchange.
Key Highlights
- 1Medtronic Luxco issued €3.5 billion in senior notes across four maturities (2025, 2028, 2031, 2034) with fixed interest rates ranging from 2.625% to 3.375%.
- 2The offering is primarily intended to refinance maturing debt, including €0.00% notes due 2022 and €0.375%/0.00% notes due 2023.
- 3Net proceeds of approximately €3.47 billion are expected after deducting underwriting discounts and expenses.
- 4The new notes are fully and unconditionally guaranteed by Medtronic plc and Medtronic, Inc.
- 5Medtronic plc has reiterated its previously issued FY2023 adjusted EPS guidance, indicating the financial impact of this debt issuance is already factored in.
- 6The company has applied to list these new senior notes on the New York Stock Exchange.
- 7The Notes are general unsecured senior obligations of Medtronic Luxco and rank equally with other unsecured senior indebtedness.