Medtronic aims to raise $1bn in note sale
This article was originally published in Clinica
Medtronic is looking to raise around $1bn through a public note sale. Medtronic will offer $500m of its 2.625% senior notes, due 2016, and $500m of its 4.125% senior notes, due 2021. The firm intends to use the cash for general corporate purposes, which could include the repayment of debts. Last month, Minneapolis, Minnesota-based Medtronic recorded modest growth in its third fiscal quarter, and announced plans to cut up to 2,000 jobs in an attempt to control costs (www.clinica.co.uk, 22 February 2011). In other moves to reduce outgoings, it has also cancelled five contracts worth around $2bn with US healthcare group purchasing organisation (GPO) Novation (www.clinica.co.uk, 1 March 2011). Shortly after that, Medtronic also pulled out of its contract with another GPO, Premier, which covered spinal products. Medtronic now plans to sell these products directly to hospitals.