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 Covidien Ltd.
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.
