Medtronic announced it had tendered approximately $5.8 billion in aggregate principal of outstanding debt securities as of 5:00 p.m. Eastern time on April 13, the early deadline for a previously announced tender offer.
The company also said it had increased its cash tender offer from $2.75 billion to $3 billion for outstanding debt issued by Medtronic and Covidien International Finance S.A., two of the company’s wholly-owned subsidiaries.
Medtronic released the pricing terms of the tender offer on April 14.
The tender offer is scheduled to expire at 11:59 p.m. Eastern time on April 27, but Medtronic said it did not expect its subsidiaries to purchase any tenders of the debt following the early deadline.
Medtronic said the tender offer would reduce its debt load and help it meet the capital allocations plans announced in January. The costs related to the transaction are expected to be included as a one-time expense in the fourth fiscal quarter of 2016. Medtronic is targeting an A credit profile.
Executive Editor
Tim Casey joined TriMed Media Group in 2015 as Executive Editor. For the previous four years, he worked as an editor and writer for HMP Communications, primarily focused on covering managed care issues and reporting from medical and health care conferences. He was also a staff reporter at the Sacramento Bee for more than four years covering professional, college and high school sports. He earned his undergraduate degree in psychology from the University of Notre Dame and his MBA degree from Georgetown University.