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Medtronic closes €6.25B debt offering; redeems outstanding senior notes

Medtronic PLC's debt issuing unit Medtronic Global Holdings S.C.A., also known as Medtronic Luxco, closed a public offering of senior notes and netted approximately €6.2 billion.

The offering comprised €1.25 billion worth of 0% senior notes due 2023, €1 billion of 0% senior notes due 2025, €1 billion of 0.375% senior notes due 2028, €1 billion of 0.750% senior notes due 2032, €1 billion of 1.375% senior notes due 2040 and €1 billion of 1.625% senior notes due 2050.

Dublin-based Medtronic PLC and Medtronic Inc., an indirect unit of Luxembourg-based Medtronic Luxco, fully and unconditionally guaranteed Medtronic Luxco's obligations under the notes on a senior unsecured basis.

The net proceeds will be used to repay Medtronic Luxco's €750 million floating rate notes due 2021 and to redeem the outstanding senior notes that it issued along with Medtronic Inc. and Medtronic PLC's indirect subsidiary Covidien International Finance SA, or CIFSA.

Proceeds will also be used to repay other indebtedness and for general corporate purposes.

Barclays Bank PLC, BofA Securities Europe SA, Mizuho Securities Europe GmbH and Deutsche Bank Aktiengesellschaft were the joint book-running managers for the debt offering.

Meanwhile, Medtronic PLC said it plans to redeem certain series of outstanding senior notes, including all of Medtronic Inc.'s $1.5 billion 3.150% senior notes due 2022, all of its $530.2 million 2.750% senior notes due 2023, all of its $432.5 million 3.625% senior notes due 2024, and $810 million of its $2.7 billion 3.500% senior notes due 2025.

Also part of the redemption plan are all of CIFSA's outstanding $650 million 3.200% senior notes due 2022, all of its outstanding $309.5 million 2.950% senior notes due 2023 and all of Medtronic Luxco's €1.5 billion 0% senior notes due 2021.

The date of redemption for the notes will be Oct. 29.