Medtronic prices $2 billion in senior notes
- Medtronic Plc announced Wednesday a round of upcoming offerings aimed at bringing the Dublin-based medical device maker about $2 billion.
- Wholly owned subsidiary Medtronic Global Holdings priced an offering of $1 billion in 1.7% senior notes due 2019 and $850 million in 3.35% senior notes due 2027.
- A third offering by Medtronic, Inc., priced $150 million 4.625% senior notes due 2045. These notes will form a single series with the $4 billion in currently outstanding 4.625% notes due 2045, the company said.
Net proceeds of the offerings will be put toward general corporate purposes, Medtronic said.
Acting as joint book-running managers for the offerings are Citigroup Global Markets, Goldman Sachs & Co., Morgan Stanley & Co. and Wells Fargo Securities. BNP Paribas Securities, Deutsche Bank Securities, HSBC Securities and Mizuho Securities are co-managers.
Medtronic recently announced plans to sell all or part of its medical supplies business, much of which was acquired through its acquisition of Covidien. The medical supplies business is reportedly valued at up to $5 billion.
Long-time medtech giants like Medtronic are facing increasing competition as companies like IBM, Microsoft and Apple move into the healthcare space, leveraging information and analytics solutions from other industry sectors to tackle healthcare problems. Driving this trend is demand for data-driven information and the move to value-based care and payment models.
Medtronic has sensed the tide toward digital. Last month, the Food and Drug Administration cleared the firm’s noninvasive CardioInsight 3-D Mapping system for arrhythmias—the first of its kind in the world, according to Medtronic.