On September 29, 2020 Medtronic plc (the "Company") (NYSE:MDT) reported that its wholly-owned subsidiary Medtronic Global Holdings S.C.A. ("Medtronic Luxco") has closed a registered public offering (the "Offering") of €1,250,000,000 principal amount of 0.000% Senior Notes due 2023, €1,000,000,000 principal amount of 0.000% Senior Notes due 2025, €1,000,000,000 principal amount of 0.375% Senior Notes due 2028, €1,000,000,000 principal amount of 0.750% Senior Notes due 2032, €1,000,000,000 principal amount of 1.375% Senior Notes due 2040 and €1,000,000,000 principal amount of 1.625% Senior Notes due 2050 (collectively, the "Notes") (Press release, Medtronic, SEP 29, 2020, View Source [SID1234567775]). All of Medtronic Luxco’s obligations under the Notes are fully and unconditionally guaranteed by the Company and Medtronic, Inc. ("Medtronic, Inc."), a wholly-owned indirect subsidiary of Medtronic Luxco, on a senior unsecured basis.
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The net proceeds from the Offering are approximately €6.2 billion, after deducting underwriting discounts and commissions and estimated expenses related to the Offering payable by Medtronic Luxco. The net proceeds of the Offering will be used to repay €750 million aggregate principal amount of Medtronic Luxco’s Floating Rate Senior Notes due 2021 at maturity on March 7, 2021, which bore interest at a rate of 0% per annum at July 31, 2020, and to redeem the outstanding senior notes issued by Medtronic Luxco, Medtronic, Inc. and Covidien International Finance S.A., a wholly-owned indirect subsidiary of the Company as described below. Any remaining net proceeds of the Offering will be used for repayment of other indebtedness and general corporate purposes.
Today, the Company also announced that it intends to redeem all of the outstanding $1.5 billion aggregate principal amount of Medtronic, Inc.’s 3.150% Senior Notes due 2022, all of the outstanding $530.2 million aggregate principal amount of Medtronic, Inc.’s 2.750% Senior Notes due 2023, all of the outstanding $432.5 million aggregate principal amount of Medtronic, Inc.’s 3.625% Senior Notes due 2024, $810 million of the outstanding $2.7 billion aggregate principal amount of Medtronic, Inc.’s 3.500% Senior Notes due 2025, all of the outstanding $650 million aggregate principal amount of CIFSA’s 3.200% Senior Notes due 2022, all of the outstanding $309.5 million aggregate principal amount of CIFSA’s 2.950% Senior Notes due 2023 and all of the outstanding €1.5 billion aggregate principal amount of Medtronic Luxco’s 0.000% Senior Notes due 2021 (collectively, the "Redemption Notes"), in each case at the make-whole redemption prices specified in, and otherwise in accordance with, the indentures governing such Redemption Notes. The redemption date for the Redemption Notes will be October 29, 2020. This press release does not constitute a notice of redemption of any of the Redemption Notes.