Medtronic starts exchange for 1.25% convertibles

New York, Dec. 14 - Medtronic Inc. announced an exchange offer for its 1.25% series B contingent convertible debentures due 2021.

The company is offering new convertibles with similar terms except for the following features:

* Net share settlement. All conversions will be paid in cash up to the principal amount and stock for any remaining value;

* Puts will be payable in cash only instead of cash, stock or a combination;

* Repurchases on a change of control will be payable in cash only instead of cash, stock or a combination.

Medtronic will pay an exchange fee of $2.50 per $1,000 principal amount.

The Minneapolis medical technology company currently has $1.973 billion principal amount of the convertibles outstanding.

The exchange runs through midnight ET on Jan. 12.

Wells Fargo Bank NA is exchange agent, Deutsche Bank Securities Inc. is the financial adviser, and Global Bondholder Services Corp. is information agent (banks and brokers call 212 430-3774; others call 866 470-4300).

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