Medtronic draws $3 billion under term loan, amends revolver with close of Covidien acquisition

By Jennifer Chiou

New York, Jan. 27 – Medtronic Inc. borrowed on Monday $3 billion under its senior unsecured term loan credit agreement for a term of three years, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent.

Funds were used to partially finance the company’s scheme consideration and certain transaction expenses as Medtronic completed its acquisition of Dublin-based health-care products company Covidien plc. Under the transaction, Medtronic and Covidien became subsidiaries of the new Medtronic plc.

On the same date, Medtronic amended and restated its existing $2.25 billion senior unsecured revolving credit facility, entering into a $3.5 billion five-year revolver.

“The culmination of this acquisition marks a significant milestone in our industry, creating a company uniquely positioned to alleviate pain, restore health and extend life for more patients around the world,” Omar Ishrak, chairman and CEO of Medtronic, said in a press release.

“We can now bring together the extensive and innovative capabilities of both Medtronic and Covidien with an underlying objective to solve healthcare’s biggest challenge – expanding access and improving clinical outcomes, while lowering costs.”

Medtronic Inc. was a medical technology company based in Minneapolis. The new Medtronic is based in Dublin.

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