Boston Scientific announces completion of €1.5 billion offering of senior notes

Rhea-AI Summary

Boston Scientific (NYSE: BSX) announced that its wholly owned finance subsidiary, American Medical Systems Europe B.V., has completed a public offering of €1.5 billion in senior notes. The offering consists of €850 million in 3.000% notes due 2031 and €650 million in 3.250% notes due 2034.

The notes, fully guaranteed by Boston Scientific, will be listed on the Euronext Dublin Global Exchange Market. The proceeds will be used to repay AMS Europe's 0.750% senior notes maturing March 8, 2025, pay accrued interest, and support general corporate purposes, including short-term investments, debt reduction, working capital, and potential acquisitions.

Positive

• Successful €1.5B debt refinancing
• Higher-interest debt replaces lower-interest notes (0.750%)
• Maintains financial flexibility for potential acquisitions
• Strengthens European market presence through Euronext listing

Negative

• Higher interest rates on new debt (3.000% and 3.250% vs 0.750%)
• Increased long-term debt obligations through 2034
• Higher interest expenses will impact future cash flows

Insights

Financial Analyst

Boston Scientific's €1.5 billion senior notes offering represents a strategic debt refinancing that extends maturity while adapting to higher interest rate realities. The company is replacing maturing 0.750% notes with new 3.000% and 3.250% instruments, extending maturities to 2031 and 2034 respectively.

This refinancing will increase annual interest expenses by approximately €37.5 million (€1.5 billion × average 2.5% rate differential), significantly impacting future cash flows. However, given current ECB rates hovering around 3.75%, these pricing levels actually reflect Boston Scientific's strong credit profile and investor confidence in the company's long-term prospects.

The transaction accomplishes several strategic objectives:

• Eliminates near-term refinancing risk by pushing maturities out 6-9 years
• Locks in rates before potential future increases
• Maintains financial flexibility with the inclusion of general corporate purposes in use of proceeds
• Preserves cash reserves by using debt markets rather than existing liquidity

The explicit mention of potential acquisitions in the use of proceeds suggests management is keeping options open for strategic growth opportunities, particularly important in the competitive medical device sector where Boston Scientific operates.

This debt issuance, representing less than 1% of the company's $154 billion market cap, reflects prudent balance sheet management rather than a significant transformation of the capital structure. The transaction demonstrates management's proactive approach to debt refinancing while maintaining flexibility for future strategic initiatives.

MARLBOROUGH, Mass., Feb. 26, 2025 /PRNewswire/ -- Boston Scientific Corporation (the "Company") (NYSE: BSX) today announced that American Medical Systems Europe B.V. ("AMS Europe"), its wholly owned finance subsidiary, has completed a public offering of €850,000,000 aggregate principal amount of 3.000% notes due 2031 and €650,000,000 aggregate principal amount of 3.250% notes due 2034 (collectively, the "Notes"). The Notes are fully and unconditionally guaranteed by the Company. Application has been made for the Notes to be admitted to the Official List of the Irish Stock Exchange plc trading as Euronext Dublin and to trading on the Global Exchange Market thereof.

The Company intends to use the net proceeds from the offering, together with cash on hand, to fund the repayment at maturity of AMS Europe's 0.750% senior notes due March 8, 2025 and to pay accrued and unpaid interest with respect to such notes, and for general corporate purposes, which may include, among other things, short term investments, reduction of short term debt, funding of working capital and potential future acquisitions.

About Boston Scientific
Boston Scientific transforms lives through innovative medical technologies that improve the health of patients around the world. As a global medical technology leader for more than 45 years, we advance science for life by providing a broad range of high-performance solutions that address unmet patient needs and reduce the cost of health care. Our portfolio of devices and therapies helps physicians diagnose and treat complex cardiovascular, respiratory, digestive, oncological, neurological and urological diseases and conditions. Learn more at www.bostonscientific.com and connect on LinkedIn and X, formerly Twitter.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "intend" and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding the intended use of proceeds. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the forward-looking statements expressed in this press release. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.

Risks and uncertainties that may cause such differences include, among other things: economic conditions, including the impact of foreign currency fluctuations, future U.S. and global political, competitive, reimbursement and regulatory conditions; geopolitical events; manufacturing, distribution and supply chain disruptions and cost increases; disruptions caused by cybersecurity events; disruptions caused by public health emergencies or extreme weather or other climate change-related events; labor shortages and increases in labor costs; variations in outcomes of ongoing and future clinical trials and market studies; new product introductions and the market acceptance of those products; market competition for our products; expected pricing environment; expected procedural volumes; the closing and integration of acquisitions; demographic trends; intellectual property rights; litigation; financial market conditions; the execution and effect of our restructuring program; the execution and effect of our business strategy, including our cost-savings and growth initiatives; our ability to achieve environmental, social and governance goals; and future business decisions made by us and our competitors. New risks and uncertainties may arise from time to time and are difficult to predict. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A – Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A – Risk Factors in Quarterly Reports on Form 10-Q we will file hereafter. We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements, except as required by law. This cautionary statement is applicable to all forward-looking statements contained in this press release.

CONTACTS:
Chanel Hastings
Media Relations
+1 (508) 382-0288
Chanel.Hastings@bsci.com 

Jon Monson 
Investor Relations 
+1 (508) 683-5450
BSXInvestorRelations@bsci.com 

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SOURCE Boston Scientific Corporation

FAQ

What is the total value of Boston Scientific's (BSX) new senior notes offering in 2025?

The total offering is €1.5 billion, comprising €850 million in notes due 2031 and €650 million in notes due 2034.

What are the interest rates for BSX's 2025 European senior notes?

The notes carry interest rates of 3.000% for those due 2031 and 3.250% for those due 2034.

How will Boston Scientific (BSX) use the proceeds from its 2025 European bond offering?

The proceeds will repay maturing 0.750% notes due March 2025, pay accrued interest, and fund corporate purposes including investments, debt reduction, working capital, and potential acquisitions.

Where will Boston Scientific's (BSX) new European senior notes be listed?

The notes will be listed on the Euronext Dublin Global Exchange Market.