Medtronic announces pricing of €3.0 billion of senior notes

Rhea-AI Summary

Medtronic plc (NYSE: MDT) has announced the pricing of €3 billion in senior notes through its subsidiary, Medtronic, Inc. The offering includes €850 million in 3.650% senior notes due 2029, €850 million in 3.875% senior notes due 2036, €600 million in 4.150% senior notes due 2043, and €700 million in 4.150% senior notes due 2053. The notes are guaranteed by Medtronic plc and its subsidiary Medtronic Global Holdings S.C.A. The proceeds will be used for general corporate purposes including debt repayment. The offering closes on June 3, 2024, managed by Citigroup, J.P. Morgan, Merrill Lynch, and Mizuho.

Positive

• Medtronic successfully priced €3 billion in senior notes, which can provide significant liquidity.
• The notes have varying maturities, reducing refinancing risk by spreading out the debt over time.
• The proceeds will be used for general corporate purposes, which may include paying off existing debt, potentially strengthening the company's balance sheet.
• The offering is backed by high-profile financial institutions, reflecting confidence in Medtronic's creditworthiness.

Negative

• Issuing €3 billion in new debt increases Medtronic's overall debt burden, which may elevate financial risk.
• The interest rates on the notes are relatively high, which could increase future interest expenses.
• Adverse market conditions could affect investor appetite for Medtronic's debt, potentially impacting future financing activities.

News Market Reaction – MDT

-1.09%

1 alert

-1.09% News Effect

On the day this news was published, MDT declined 1.09%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

DUBLIN, May 29, 2024 /PRNewswire/ -- Medtronic plc (the "Company") (NYSE: MDT) announced today that its wholly-owned indirect subsidiary, Medtronic, Inc., has priced an offering (the "Offering") of €850,000,000 principal amount of 3.650% senior notes due 2029, €850,000,000 principal amount of 3.875% senior notes due 2036, €600,000,000 principal amount of 4.150% senior notes due 2043, and €700,000,000 principal amount of 4.150% senior notes due 2053 (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., 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 for general corporate purposes, which may include repayment of outstanding commercial paper and other indebtedness. The Offering is expected to close on June 3, 2024, subject to customary closing conditions. The joint book-running managers for the Offering are Citigroup Global Markets Limited, J.P. Morgan Securities plc, Merrill Lynch International and Mizuho International plc.

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 Citigroup Global Markets Limited, toll-free at +1 800 831 9146, J.P. Morgan Securities plc at +44 20 7134 2468 (non-U.S. investors), or J.P. Morgan Securities LLC collect at +1 212 834 4533 (U.S. investors), Merrill Lynch International, toll free at +1 800 294 1322 and Mizuho International plc, at +44 20 7248 3920.

About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Dublin, 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 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 total amount of senior notes Medtronic priced?

Medtronic priced a total of €3 billion in senior notes.

What are the interest rates for the Medtronic senior notes?

The interest rates are 3.650% for notes due 2029, 3.875% for notes due 2036, and 4.150% for notes due 2043 and 2053.

What will Medtronic use the proceeds from the senior notes offering for?

The proceeds will be used for general corporate purposes, which may include repayment of outstanding commercial paper and other indebtedness.

When is the closing date for Medtronic's senior notes offering?

The offering is expected to close on June 3, 2024.

Which financial institutions are managing Medtronic's senior notes offering?

The joint book-running managers for the offering are Citigroup Global Markets , J.P. Morgan Securities plc, Merrill Lynch International, and Mizuho International plc.