Street Calls of the Week
GALWAY, Ireland - Medtronic plc (NYSE:MDT) announced Monday that its subsidiary Medtronic, Inc. has closed a registered public offering of €1.5 billion in senior notes. The offering consists of €750 million in 2.950% senior notes due 2030 and €750 million in 4.200% senior notes due 2045. According to InvestingPro data, the company maintains strong financial health with robust cash flows sufficient to cover interest payments, supporting its debt management strategy.
The company raised approximately €1.49 billion in net proceeds after deducting underwriting discounts and estimated expenses. According to the press release, these funds are expected to be used to repay Medtronic Global Holdings S.C.A.’s 0.000% Senior Notes and 2.625% Senior Notes, both due in 2025.
Deutsche Bank AG, London Branch and Goldman Sachs & Co. LLC served as joint book-running managers for the offering.
All obligations under the notes are fully and unconditionally guaranteed by Medtronic plc and Medtronic Global Holdings S.C.A., a wholly-owned subsidiary of the company and the indirect parent of Medtronic, Inc., on a senior unsecured basis.
Medtronic plc, headquartered in Ireland, is a global healthcare technology company with operations in more than 150 countries and a workforce of over 95,000 employees. The company develops and manufactures technologies and therapies for various health conditions, including cardiac devices, surgical robotics, and patient monitoring systems. As a prominent player in the Healthcare Equipment & Supplies industry, Medtronic has maintained dividend payments for 49 consecutive years, with InvestingPro analysis showing a current dividend yield of 3%. The company’s overall financial health score is rated as "GREAT" by InvestingPro analysts, who have identified multiple growth factors for the stock.
The offering was made through a prospectus dated March 3, 2023, and a prospectus supplement, both available on the U.S. Securities and Exchange Commission website. The stock is currently trading near its 52-week high, with a market capitalization of approximately $121 billion. For deeper insights into Medtronic’s valuation and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
In other recent news, Medtronic has received FDA approval for its Altaviva device, a minimally invasive therapy designed to treat urge urinary incontinence. The device is implanted near the ankle and helps restore communication between the bladder and brain. Additionally, Medtronic’s Hugo robotic-assisted surgery system met safety and effectiveness endpoints in a hernia repair study, achieving a 100% surgical success rate and low surgical site event rates. Despite these advancements, Piper Sandler has maintained its Neutral rating on Medtronic, noting challenges in the company’s surgical business due to market shifts toward robotic procedures and GLP-1 medications.
In related developments, Piper Sandler reiterated its Overweight rating on DexCom, highlighting strong growth in the continuous glucose monitoring market driven by basal insulin users. Meanwhile, Orchestra BioMed presented long-term data showing that its AVIM therapy for hypertension provides sustainable blood pressure reduction over extended periods. The therapy maintained an average reduction of 8.9 mmHg in systolic blood pressure for 3.6 years in patients from the MODERATO II trial. These updates reflect a dynamic landscape in the medical technology sector, with companies making significant strides in treatment innovations and market positioning.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.