PEMBROKE, BERMUDA, October 18 /CNW/ - Covidien Ltd. (NYSE: COV; BSX: COV)
today announced that its wholly-owned subsidiary, Covidien International
Finance S.A. (CIFSA), has priced an offering of $2.75 billion aggregate
principal amount of fixed rate senior notes to qualified institutional buyers
pursuant to Rule 144A of the Securities Act of 1933 (the "Securities Act") and
to non-U.S. persons in reliance on Regulation S under the Securities Act.
The $250,000,000 Notes due 2010 will be issued at a price of 99.892%,
plus accrued interest, and will bear interest at a rate of 5.15% per year,
payable semi-annually; the $500,000,000 Notes due 2012 will be issued at a
price of 99.864%, plus accrued interest, and will bear interest at a rate of
5.45% per year, payable semi-annually; the $1,150,000,000 Notes due 2017 will
be issued at a price of 99.927%, plus accrued interest, and will bear interest
at a rate of 6.00% per year, payable semi-annually; and the $850,000,000 Notes
due 2037 will be issued at a price of 99.560%, plus accrued interest, and will
bear interest at a rate of 6.55% per year, payable semi-annually.
The notes will be CIFSA's senior unsecured obligations and will rank
equally in right of payment with all of its existing and future senior debt,
and senior to any subordinated indebtedness that CIFSA may incur. These notes
are fully and unconditionally guaranteed on a senior unsecured basis by
The transaction is expected to settle on October 22, 2007.
Covidien intends to use the net proceeds of this offering to repay a
portion of its borrowings under its unsecured bridge loan facilities, of which
$3.201 billion is currently drawn.
The notes will not be registered under the Securities Act or the
securities laws of any other jurisdiction and may not be offered or sold in
the United States absent registration or an applicable exemption from the
registration requirements of the Securities Act.
This announcement does not constitute an offer to sell or the
solicitation of offers to buy any security and shall not constitute an offer,
solicitation, or sale of any security in any jurisdiction in which such offer,
solicitation, or sale would be unlawful.
For further information:
For further information: Covidien Ltd. Eric Kraus, 508-261-8305 Senior
Vice President Corporate Communications firstname.lastname@example.org or Coleman
Lannum, 508-452-4343 CFA Vice President Investor Relations
email@example.com or Bruce Farmer, 508-452-4372 Director Financial
Communications firstname.lastname@example.org or Wayde McMillan, 508-452-4387
Director Investor Relations email@example.com