Abbott swaps out all but $194.25 million of five St. Jude note series

By Susanna Moon

Chicago, March 23 – Abbott announced the exchange for five series of notes issued by St. Jude Medical, LLC, the successor to St. Jude Medical, Inc., which Abbott acquired in January.

As announced on Feb. 21, for each $1,000 principal amount of the St. Jude notes, Abbott was offering $1,000 principal amount of its own notes with the same coupon and maturity date plus $2.50 in cash.

Abbott issued the following amount of new notes in the exchange:

• $473.77 million in exchange for $473,783,000 of St. Jude’s $500 million of 2% senior notes due 2018;

• $483,689,000 in exchange for $483,692,000 of St. Jude’s $500 million of 2.8% senior notes due 2020;

• $818,429,000 in exchange for $818,443,000 of St. Jude’s $900 million of 3.25% senior notes due 2023;

• $490,690,000 in exchange for $490,710,000 of St. Jude’s $500 million of 3.875% senior notes due 2025; and

• $639,074,000 in exchange for $639,126,000 of St. Jude’s $700 million of 4.75% senior notes due 2043.

The total includes an early participation premium of $30.00 in Abbott notes per $1,000 principal amount of St. Jude notes that will only be paid to holders who tendered by 5 p.m. ET on March 6, the consent date.

The exchange remained open until 11:59 p.m. ET on March 20.

After the exchange, $194,246,000 principal amount of existing notes remain outstanding across the five series, according to a company update.

The company said on March 7 that it obtained tenders for 90% of each series of notes in the exchange, which was enough to amend the notes.

In the consent solicitation, Abbott was seeking to amend the indentures for the St. Jude notes in order to eliminate various covenants, event of default provisions and other provisions.

The dealer managers are BofA Merrill Lynch (888 292-0070 or 980 387-3907), Barclays (800 438-3242, 212 528-7581 or us.lm@barclays.com) and Morgan Stanley & Co. LLC (800 624-1808, 212 761-1057 or lmgny@morganstanley.com).

The exchange agent and information agent is D.F. King & Co., Inc. (212 269-5550, 800 659-6590, abt@dfking.com or dfking.com/abt).

Abbott is an Abbott Park, Ill., health care company with offerings in diagnostics, medical devices, nutritionals and branded generic pharmaceuticals.

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