By Devika Patel
Knoxville, Tenn., March 22 – Medtronic plc offered further details about a $2 billion sale of senior notes (A3/A) that priced in three fixed-rate tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The offering included two tranches of fixed-rate notes placed by Medtronic Global Holdings SCA and guaranteed by Medtronic plc and Medtronic, Inc.
Medtronic Global Holdings priced $1 billion of 1.7% two-year notes at a spread of Treasuries plus 47 basis points. These notes priced at 99.926 to yield 1.738%.
The company sold $850 million of 3.35% 10-year notes at 92 bps over Treasuries. These notes priced at par.
Also, subsidiary Medtronic, Inc. priced a $150 million add-on to the company’s 4.625% bonds due March 15, 2045 on Tuesday at a spread of Treasuries plus 117 bps. These notes priced at 106.542 to yield 4.224%.
The company originally sold $4 billion of the bonds on Dec. 1, 2014 at 99.732 to yield 4.642%, or 170 bps over Treasuries. The total outstanding now is $4.15 billion.
The reopened bonds are guaranteed by Medtronic plc and Medtronic Global Holdings SCA.
All three tranches priced on the tight side of guidance.
Citigroup Global Markets Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds from the offering will be used for general corporate purposes.
Medtronic is a medical technology and services company based in Dublin. Subsidiary Medtronic Global Holdings is based in Luxembourg. Medtronic Inc. is based in Minneapolis.
| Issuer: | Medtronic plc
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC
|
| Co-managers: | BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Mizuho Securities USA Inc.
|
| Trade date: | March 21
|
| Settlement date: | March 28
|
| Ratings: | Moody’s: A3
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Issuing entity: | Medtronic Global Holdings SCA
|
| Guarantors: | Medtronic plc and Medtronic, Inc.
|
| Amount: | $1 billion
|
| Maturity: | March 28, 2019
|
| Coupon: | 1.7%
|
| Price: | 99.926
|
| Yield: | 1.738%
|
| Spread: | Treasuries plus 47 bps
|
| Price guidance: | Treasuries plus 50 bps area, plus or minus 3 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps until March 28, 2019, then a par call
|
|
|
| 10-year notes
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| Issuing entity: | Medtronic Global Holdings SCA
|
| Guarantors: | Medtronic plc and Medtronic, Inc.
|
| Amount: | $850 million
|
| Maturity: | April 1, 2027
|
| Coupon: | 3.35%
|
| Price: | Par
|
| Yield: | 3.35%
|
| Spread: | Treasuries plus 92 bps
|
| Price guidance: | Treasuries plus 95 bps area, plus or minus 3 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps until Jan. 1, 2027, then a par call
|
|
|
| Add-on to notes due 2045
|
| Issuing entity: | Medtronic, Inc.
|
| Guarantors: | Medtronic plc and Medtronic Global Holdings SCA
|
| Amount: | $150 million reopening
|
| Maturity: | March 15, 2045
|
| Coupon: | 4.625%
|
| Price: | 106.542
|
| Yield: | 4.224%
|
| Spread: | Treasuries plus 117 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps until March 15, 2045, thereafter at par
|
| Price guidance: | Treasuries plus 120 bps area, plus or minus 3 bps
|
| Total outstanding: | $4.15 billion, including $4 billion priced on Dec. 1, 2014 to yield 170 bps over Treasuries
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