By Angela McDaniels
Tacoma, Wash., June 4 Becton, Dickinson and Co. determined the prices it will pay in its tender offers for up to $1.1 billion of seven series of debt securities, according to a company news release.
The total consideration per $1,000 principal amount of notes is noted in the table below.
In addition, the company amended the tender offers to increase the tender subcap for the 5% notes due 2040 to $175,016,000 from $75 million, the tender subcap for the 4.685% notes due 2044 to $175,002,000 from $175 million and the tender subcap for the 3.7% notes due 2027 to $675 million from $600 million.
The offers were fully subscribed as of the early tender date, 5 p.m. ET on June 3.
Holders tendered the following notes by the early deadline, with the notes listed in order of acceptance priority level:
$175,016,000, or 58.34%, of the companys $300 million outstanding 5% notes due 2040;
$150,373,000, or 50.14%, of its $299,877,000 outstanding 4.875% notes due 2044;
$802,754,000, or 66.9%, of its $1.2 billion outstanding 4.685% notes due 2044;
$1,941,877,000, or 80.91%, of its $2.4 billion outstanding 3.7% notes due 2027;
$869,242,000, or 63.22%, of its $1,375,000,000 outstanding 3.734% notes due 2024;
$977,019,000, or 65.13%, of its $1.5 billion outstanding 4.669% notes due 2047; and
$1,525,173,000, or 84.75%, of its $1.8 billion outstanding 2.894% notes due 2022.
Because the tender offers are fully subscribed, the company does not expect to accept any notes tendered after the early tender date.
Because the aggregate principal amount of 4.875% notes due 2044, 4.685% notes due 2044 and 3.7% notes due 2027 tendered would exceed the applicable tender subcaps, the company will accept these notes for purchase on a prorated basis.
The proration rate is 49.92% for the 4.875% notes due 2044, 21.84% for the 4.685% notes due 2044 and 34.80% for the 3.7% notes due 2027.
The company will accept all of the 5% notes due 2040 tendered as of the early tender date.
The company will not purchase any of the tendered 3.734% notes due 2024, 4.669% notes due 2047 or 2.894% notes due 2022.
Pricing was set at 9 a.m. ET on June 4. Each total consideration includes an early tender payment of $30.00 per $1,000 principal amount of notes tendered by the early tender date.
The company will also pay accrued interest to the settlement date, which is expected to be June 5.
The offers will expire at 11:59 p.m. ET on June 18.
The offers were subject to a financing condition, which has been satisfied.
Barclays (800 438-3242 or 212 528-7581), Goldman Sachs & Co. LLC (800 828-3182 or 212 357-0215) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-8553) are the lead dealer managers for the tender offers. Global Bondholder Services Corp. (866 794-2200 or 212 430-3774) is the tender and information agent.
Becton, Dickinson is a medical technology company based in Franklin Lakes, N.J.
| Notes | Reference Treasury | Fixed spread | Total consideration
|
| 5% notes due 2040 | 3% Treasury due Feb. 15, 2049 | 170 bps | $1,100.93
|
| 4.875% notes due 2044 | 3% Treasury due Feb. 15, 2049 | 175 bps | $1,082.30
|
| 4.685% notes due 2044 | 3% Treasury due Feb. 15, 2049 | 145 bps | $1,103.31
|
| 3.7% notes due 2027 | 2.375% Treasury due May 15, 2029 | 105 bps | $1,036.28
|
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