Here are five insights.
1. Medtronic intends to redeem $400 million in 5.6 percent senior notes due 2019 and $765.6 million in 4.45 percent senior notes due 2020.
2. April 27, 2018 is the redemption date for the notes.
3. Medtronic “believes the redemption represents an attractive opportunity to deploy its capital efficiently, given the economic benefit of lower net interest expense and lower average cost of debt outstanding,” the company’s SEC filing states.
4. The $1.2 billion repurchasing plan is in addition to its planned share repurchases to offset employee compensation dilution. The repurchases will be made in accordance with Medtronic’s existing $5 billion share repurchase program.
5. The notes redemption and ordinary shares repurchase will be funded with cash and cash equivalents.
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