Medtronic prints jumbo €7 billion bonds

Flags outside Medtronic operational headquarters

Dublin-headquartered Medtronic, the world’s largest medical technology company, has printed the largest European corporate bond of the year so far – an upsized €7 billion (US$7.9 million) six-tranche deal.

In one fell swoop the group has successfully reshaped its debt. Following a move to Dublin in 2015 the group said that it wanted to have a quarter of its debt in Euro.

It priced €500 million floating 2021s; €1.5 billion 0% 2021s; €1.5 billion 0.375% 2023s; €1.5 billion 1.125% 2027s; €1 billion 1.625% 2031s; and €1 billion 2.250% 2039s.

Books hit €33 billion during bookbuilding, which allowed Medtronic to upsize the deal from €5.5 billion and tighten in guidance. While both two-year tranches came in 5bp, the 12-year and the 25-year came in 10bp each.

Net proceeds will be used to fund tender offers for the group’s outstanding notes. Medtronic said that any remaining proceeds would be used to repay the group’s US dollar 1.7% March 2019s and for general corporate purposes.

Medtronic is rated A3/A.

Joint managers are Barclays and Merrill Lynch.