By Andrea Heisinger
New York, March 10 - Medtronic Inc. gave terms Tuesday for its $1.25 billion of senior notes (A1/AA-/) in three tranches that priced late Monday, according to an FWP filing with the Securities and Exchange Commission.
The $550 million of five-year notes priced at par to yield 4.5%, or Treasuries plus 262.5 basis points. The notes have a make-whole call of Treasuries plus 40 bps.
The $400 million of 5.6% 10-year notes priced at 99.931 to yield 5.609%, or Treasuries plus 275 bps. The notes have a make-whole call at Treasuries plus 40 bps.
A $300 million tranche of 6.5% 30-year notes was sold at 99.75 to yield 6.519%, or Treasuries plus 295 bps.
Bookrunners were Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc.
Co-managers were Banc of America Securities LLC, Mitsubishi UFJ Securities, Goldman Sachs & Co. and UBS Investment Bank.
Proceeds will be used for general corporate purposes, including repaying a portion of outstanding commercial paper.
The medical technology company is based in Minneapolis.
| Issuer: | Medtronic Inc.
|
| Issue: | Senior notes
|
| Total amount: | $1.25 billion
|
| Bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities Inc.
|
| Co-managers: | Banc of America Securities LLC, Mitsubishi UFJ Securities, Goldman Sachs & Co., UBS Investment Bank
|
| Trade date: | March 9
|
| Settlement date: | March 12
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: AA-
|
|
|
| Five-year notes
|
| Amount: | $550 million
|
| Maturity: | March 15, 2014
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Spread: | Treasuries plus 262.5 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | March 15, 2019
|
| Coupon: | 5.6%
|
| Price: | 99.931
|
| Yield: | 5.609%
|
| Spread: | Treasuries plus 275 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
|
|
| 30-year notes
|
| Amount: | $300 million
|
| Maturity: | March 15, 2039
|
| Coupon: | 6.5%
|
| Price: | 99.75
|
| Yield: | 6.519%
|
| Spread: | Treasuries plus 295 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
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