Medtronic Announces Closing of Public Offering of €1.5 Billion of Senior Notes

Rhea-AI Summary

Medtronic plc (NYSE: MDT) has announced the successful closing of a public offering through its subsidiary Medtronic, Inc., consisting of €1.5 billion in senior notes. The offering includes €750 million of 2.950% senior notes due 2030 and €750 million of 4.200% senior notes due 2045.

The company raised net proceeds of approximately €1.49 billion after deducting underwriting discounts and expenses. These funds will be used to repay Medtronic Luxco's existing 0.000% Senior Notes and 2.625% Senior Notes, both due in 2025. Deutsche Bank AG, London Branch and Goldman Sachs & Co. LLC served as joint book-running managers for the offering.

Positive

• Successful raising of €1.49 billion in net proceeds through senior notes offering
• Strategic debt refinancing to address upcoming 2025 debt maturities
• Long-term debt structure with maturities extended to 2030 and 2045

Negative

• Increased interest expense with new notes at 2.950% and 4.200% compared to existing 0.000% and 2.625% notes
• Additional long-term debt obligations could impact future financial flexibility

Insights

Corporate Finance Specialist

Medtronic restructures €1.5B debt, extending maturities and likely securing favorable rates in anticipation of 2025 debt expirations.

Medtronic has successfully closed a €1.5 billion debt refinancing transaction that strategically restructures its debt profile. The company has issued two tranches of senior notes through its subsidiary Medtronic, Inc.: €750 million in 2.950% notes due 2030 and €750 million in 4.200% notes due 2045. This debt offering is fully guaranteed by the parent company and Medtronic Global Holdings S.C.A.

This transaction is primarily designed to address upcoming debt maturities, with proceeds targeted at repaying two existing notes due in 2025: Medtronic Luxco's 0.000% Senior Notes and 2.625% Senior Notes. The refinancing lengthens Medtronic's debt maturity profile significantly, pushing obligations out 5-20 years from the current 2025 expirations.

The interest rate structure reflects typical yield curve dynamics, with the 20-year notes carrying a substantially higher rate (4.200% vs. 2.950%) compared to the 5-year notes. This suggests Medtronic is balancing shorter-term flexibility with longer-term debt stability. The company secured approximately €1.49 billion in net proceeds after underwriting discounts and offering expenses.

This proactive debt management represents sound financial stewardship, allowing Medtronic to maintain operational flexibility while potentially optimizing its interest expense in a time of fluctuating global interest rates. The transaction doesn't significantly alter the company's overall debt levels but does restructure when those obligations come due, which can improve financial planning capabilities.

GALWAY, Ireland, Sept. 29, 2025 /PRNewswire/ -- Medtronic plc (the "Company") (NYSE: MDT) announced today that its wholly-owned indirect subsidiary, Medtronic, Inc., has closed a registered public offering (the "Offering") of €750,000,000 principal amount of 2.950% senior notes due 2030 and €750,000,000 principal amount of 4.200% senior notes due 2045 (collectively, the "Notes"). All of Medtronic, Inc.'s obligations under the Notes are fully and unconditionally guaranteed by the Company and Medtronic Global Holdings S.C.A. ("Medtronic Luxco"), a wholly-owned subsidiary of the Company and the indirect parent of Medtronic, Inc., on a senior unsecured basis.

The net proceeds from the Offering are approximately €1.49 billion, after deducting underwriting discounts and estimated expenses related to the Offering payable by Medtronic, Inc. The net proceeds of the Offering are expected to be used to repay Medtronic Luxco's 0.000% Senior Notes due 2025 and Medtronic Luxco's 2.625% Senior Notes due 2025.

Deutsche Bank AG, London Branch and Goldman Sachs & Co. LLC were the joint book-running managers for the Offering.  The Offering was made by means of a prospectus dated March 3, 2023 and prospectus supplement (together, the "Prospectus"), copies of which may be obtained for free by visiting EDGAR on the U.S. Securities and Exchange Commission website at www.sec.gov. Alternatively, copies of the Prospectus may be obtained by contacting Deutsche Bank AG, London Branch, toll-free at +1 800-503-4611 and Goldman Sachs & Co. LLC, toll-free at +1 866-471-2526.

About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary.

Forward-Looking Statements

This press release may be deemed to contain forward-looking statements regarding future events that are subject to the safe harbor created under Private Securities Litigation Reform Act of 1995 and other safe harbors under the Securities Act and the Securities Exchange Act of 1934. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but without limitation, statements relating to the expected use of proceeds from the Offering.

You should pay particular attention to the important risk factors and cautionary statements referenced in the "Risk Factors" section of the prospectus related to the offering referenced above, as well as the risk factors and cautionary statements described in Medtronic plc's filings with the SEC, including the risk factors contained in Medtronic plc's most recent Annual Report on Form 10-K. Medtronic plc does not undertake to update its forward-looking statements.

Contacts:
Erika Winkels	Ryan Weispfenning
Public Relations	Investor Relations
+1-763-526-8478	+1-763-505-4626

 

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SOURCE Medtronic plc

FAQ

What is the size of Medtronic's (MDT) September 2025 senior notes offering?

Medtronic's offering consists of €1.5 billion in senior notes, split equally between €750 million due 2030 and €750 million due 2045.

What are the interest rates on Medtronic's (MDT) new senior notes?

The senior notes carry interest rates of 2.950% for notes due 2030 and 4.200% for notes due 2045.

How will Medtronic (MDT) use the proceeds from its 2025 notes offering?

The net proceeds of €1.49 billion will be used to repay Medtronic Luxco's existing 0.000% and 2.625% Senior Notes, both due in 2025.

Who were the book-running managers for Medtronic's (MDT) 2025 notes offering?

Deutsche Bank AG, London Branch and Goldman Sachs & Co. LLC served as the joint book-running managers for the offering.

When do Medtronic's (MDT) new senior notes mature?

The new senior notes have maturity dates in 2030 (€750 million) and 2045 (€750 million).