Medtronic lifts cap on tender offer for 14 series to $4.35 billion

By Marisa Wong

Morgantown, W.Va., June 25 – Medtronic plc said it upsized its previously announced cash tender offer for notes from 14 series issued by subsidiaries Medtronic Inc., Medtronic Global Holdings SCA and Covidien International Finance SA.

The aggregate maximum purchase price was increased to $4.35 billion from $3 billion.

As previously reported, the companies are offering to purchase

• $182,949,000 of 6.5% senior notes due 2039 issued by Medtronic at 85 bps over the 3% U.S. Treasury due Feb. 15, 2049;

• $305.91 million of 5.55% senior notes due 2040 issued by Medtronic at 75 bps over the 3% U.S. Treasury due Feb. 15, 2049;

• $1,963,341,000 of 4.625% senior notes due 2045 issued by Medtronic at 70 bps over the 3% U.S. Treasury due Feb. 15, 2049;

• $176,594,000 of 4.625% senior notes due 2044 issued by Medtronic at 75 bps over the 3% U.S. Treasury due Feb. 15, 2049;

• $128.65 million of 4.5% senior notes due 2042 issued by Medtronic at 75 bps over the 3% U.S. Treasury due Feb. 15, 2049;

• $2,381,619,000 of 4.375% notes due 2035 issued by Medtronic at 50 bps over the 3% U.S. Treasury due Feb. 15, 2049;

• $325,024,000 of 4% senior note due 2043 issued by Medtronic at 75 bps over the 3% U.S. Treasury due Feb. 15, 2049;

• $4 billion of 3.5% senior notes due 2025 issued by Medtronic at 40 bps over the 2% U.S. Treasury due May 31, 2024;

• $850 million of 3.625% notes due 2024 issued by Medtronic at 35 bps over the 2% U.S. Treasury due May 31, 2024;

• $283,536,000 of 6.55% senior notes due 2037 issued by Covidien at 75 bps over the 3% U.S. Treasury due Feb. 15, 2049;

• $850 million of 3.35% senior notes due 2027 issued by Medtronic Global Holdings at 30 bps over the 2.375% U.S. Treasury due May 15, 2029;

• $2.5 billion of 3.15% senior notes due 2022 issued by Covidien at 25 bps over the 1.75% U.S. Treasury due June 15, 2022;

• $650 million of 3.2% senior notes due 2022 issued by Covidien at 25 bps over the 1.75% U.S. Treasury due June 15, 2022; and

• $309,516,000 of 2.95% senior notes due 2023 at 25 bps over the 2% U.S. Treasury due May 31, 2024.

Aside from the increased tender cap, the terms of the offers remain unchanged.

As announced on Monday, the company is also tendering for any and all of the $1,175,000,000 of notes issued in two series by Medtronic.

Those notes include

• $500 million of 4.125% senior notes due 2021, with pricing based on a fixed spread of 15 bps and the 2.375% U.S. Treasury due March 15, 2021; and

• $675 million of 3.125% senior notes due 2022, with pricing based on a fixed spread of 15 bps and the 2.375% U.S. Treasury due March 15, 2022.

The tender offers will expire at midnight ET on July 24.

Holders must tender their notes prior to 5 p.m. ET on July 9 to be eligible to receive an early tender payment of $30 per $1,000 principal amount in addition to the applicable tender offer consideration.

Pricing will be set at 11 a.m. ET on July 10.

The offers are subject to a financing condition. On Tuesday the company announced it priced a public offering of €5 billion of senior notes that is expected to close on July 2. Proceeds from the new notes will be used to fund the tender offers.

Barclays, BofA Securities Inc. and Goldman Sachs & Co. LLC are acting as the dealer managers for the offers. The information agent and tender agent is Global Bondholder Services Corp.

Medtronic is a medical technology and services company based in Dublin.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.