Medtronic Announces Pricing of €1.5 Billion of Senior Notes

Rhea-AI Summary

Medtronic (NYSE:MDT) has announced the pricing of €1.5 billion in senior notes through its subsidiary Medtronic, Inc. The offering consists of €750 million of 2.950% senior notes due 2030 and €750 million of 4.200% senior notes due 2045.

The notes will be fully guaranteed by Medtronic plc and Medtronic Global Holdings S.C.A. The proceeds will be used to repay Medtronic Luxco's existing notes: the 0.000% Senior Notes due 2025 and 2.625% Senior Notes due 2025. The offering is expected to close on September 29, 2025, with Deutsche Bank AG and Goldman Sachs serving as joint book-running managers.

Positive

• None.

Negative

• Higher interest rates on new notes (2.950% and 4.200%) compared to existing notes being repaid (0.000% and 2.625%)
• Increased interest expense will impact future cash flows

Insights

Corporate Finance Analyst

Medtronic's €1.5B debt refinancing extends maturity profile while locking in longer-term rates in the current interest rate environment.

Medtronic's €1.5 billion senior notes offering represents a strategic debt refinancing rather than new capital raising. The company is effectively replacing maturing debt—Medtronic Luxco's 0.000% and 2.625% Senior Notes due 2025—with longer-dated obligations.

The new issuance features two tranches: €750 million due 2030 at 2.950% and €750 million due 2045 at 4.200%. This structure accomplishes two key objectives: (1) extending the company's debt maturity profile by 5 and 20 years respectively, and (2) locking in rates before any potential market volatility.

While the new 4.200% rate on the 2045 notes appears higher than the maturing 2025 notes (at 0.000% and 2.625%), this reflects the significant term premium for the much longer 20-year duration rather than a deterioration in Medtronic's credit quality.

This refinancing demonstrates prudent liability management by avoiding any near-term refinancing pressure that would have occurred in 2025. The transaction maintains Medtronic's overall debt levels rather than increasing leverage, which should be viewed neutrally by credit rating agencies. This debt management approach aligns with Medtronic's position as the leading global healthcare technology company with operations across 150+ countries and a workforce of 95,000+.

GALWAY, Ireland, Sept. 15, 2025 /PRNewswire/ -- Medtronic plc (the "Company") (NYSE: MDT) announced today that its wholly-owned indirect subsidiary, Medtronic, Inc., has priced an 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 will be 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 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. The Offering is expected to close on September 29, 2025, subject to customary closing conditions. The joint book-running managers for the Offering are Deutsche Bank AG, London Branch and Goldman Sachs & Co. LLC.

The Offering is being made only by means of a prospectus dated March 3, 2023, and prospectus supplement (together, the "Prospectus"). You may get these documents 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 Offering and the expected use of proceeds therefrom, and the expected closing date of 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 and structure of Medtronic's (MDT) new senior notes offering?

Medtronic is offering €1.5 billion in senior notes, split between €750 million of 2.950% notes due 2030 and €750 million of 4.200% notes due 2045.

When will Medtronic's (MDT) new senior notes offering close?

The offering is expected to close on September 29, 2025, subject to customary closing conditions.

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

The proceeds will be used to repay Medtronic Luxco's existing 0.000% Senior Notes due 2025 and 2.625% Senior Notes due 2025.

Who are the guarantors of Medtronic's new senior notes?

The notes will be fully and unconditionally guaranteed by Medtronic plc (parent company) and Medtronic Global Holdings S.C.A. (Medtronic Luxco) on a senior unsecured basis.

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

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