By Cristal Cody
Tupelo, Miss., May 14 – Boston Scientific Corp. priced $1.7 billion of senior notes (Baa2/BBB-/BBB) in two tranches on Thursday, according to a market source and a news release.
The company sold $500 million of 1.9% five-year notes at a spread of 160 basis points over Treasuries, tighter than talk in the 185 bps area.
A $1.2 billion tranche of 2.65% 10-year notes priced with a Treasuries plus 205 bps spread.
Initial price talk was in the Treasuries plus 225 bps area.
Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to refinance $450 million of debt under the company’s revolving credit facility and a portion of its pre-payable bank debt, including $750 million under its $1 billion February 2021 term loan and $500 million under its $1.25 billion April 2021 term loan.
Boston Scientific is a medical device maker based in Marlborough, Mass.
| Issuer: | Boston Scientific Corp.
|
| Amount: | $1.7 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Trade date: | May 14
|
| Settlement date: | May 18
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | June 1, 2025
|
| Coupon: | 1.9%
|
| Spread: | Treasuries plus 160 bps
|
| Price guidance: | Treasuries plus bps 185 area
|
|
|
| 10-year notes
|
| Amount: | $1.2 billion
|
| Maturity: | June 1, 2030
|
| Coupon: | 2.65%
|
| Spread: | Treasuries plus 205 bps
|
| Price guidance: | Treasuries plus bps 225 area
|
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