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.