Medtronic announced a cash tender offer on March 31 for up to $2.75 billion in aggregate purchase price for outstanding debt issued by Medtronic, Inc. and Covidien International Finance S.A., two of the company’s wholly-owned subsidiaries.
The tender offer is for Covidien’s 6.55 percent senior notes due in 2037 and 2.95 percent senior notes due in 2023 as well as Medtronic’s 4 percent senior notes due in 2043; 2.75 percent notes due in 2023; 4.45 percent senior notes due in 2020; 4.375 percent senior notes due in 2035; and 2.5 percent senior notes due in 2020.
Medtronic said in a news release that the tender offer would expire at 11:59 p.m. Eastern Time on April 27 unless extended or terminated by Medtronic, Inc. and Covidien International Finance S.A. The company said the tender offer would reduce its debt load and would be consistent with the capital allocation plans it announced on Jan. 11. Back then, Medtronic announced it would return $5 billion to shareholders through share repurchases by the end of fiscal year 2018.