Boston Scientific Announces Completion of €2.0 Billion Offering of Senior Notes

Rhea-AI Summary

Boston Scientific Corporation (BSX) completes a public offering of €2 billion in notes to finance the acquisition of Axonics, Inc., among other expenses.

Insights

Financial Analyst

The issuance of €2 billion in notes by Boston Scientific Corporation's finance subsidiary is a significant financial move, reflecting the company's strategic funding mix for its acquisition of Axonics, Inc. The offered interest rates, 3.375% for notes due 2029 and 3.500% for those due 2032, are moderately priced debt instruments, which may suggest confidence in the company's creditworthiness and future cash flows. The fact that these notes are guaranteed by the parent company adds an additional layer of security for investors.

From a financial perspective, the decision to use a combination of proceeds from the notes, commercial paper and cash on hand to finance the acquisition and other obligations indicates a balanced approach to capital management. Investors should consider how the interest rates compare with the industry's average cost of capital and the company's existing debt profile. The timing of this debt issuance is also critical, as it coincides with the maturity of the company's senior notes, which may provide a smooth transition in terms of debt servicing.

Market Research Analyst

The strategic acquisition of Axonics, Inc. by Boston Scientific Corporation is likely to have implications for the market dynamics within the medical devices industry. The acquisition could potentially enhance Boston Scientific's product portfolio and market positioning, especially in the neuromodulation space where Axonics operates. Analyzing the competitive landscape, it's important to assess how this acquisition might affect Boston Scientific's market share and its ability to innovate.

Moreover, the admission of the notes to the Euronext Dublin and their trading on the Global Exchange Market could attract diverse international investors and increase the company's visibility in global financial markets. The long-term nature of the notes suggests that the company is planning for sustained growth and is willing to commit to long-term financial obligations.

Legal Expert

The completion of a public offering and the guarantee provided by Boston Scientific Corporation are subject to stringent regulatory requirements and investor protections. The legal implications of such guarantees ensure that investors have recourse in the event of default, which underscores the company's commitment to the obligations undertaken through these notes. Additionally, the legal process of listing the notes on the Euronext Dublin requires adherence to Irish and European Union financial regulations, which demand transparency and due diligence from the issuer.

The legal aspects of financing the acquisition deal, including the payment of related fees and expenses, are complex and involve careful negotiation and contract scrutiny. The legal framework governing these transactions is designed to protect all parties involved, including the shareholders of Boston Scientific Corporation, which is a critical consideration for stakeholders monitoring the company's governance practices.

MARLBOROUGH, Mass., Feb. 27, 2024 /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX) (the "Company") today announced that American Medical Systems Europe B.V., its wholly owned finance subsidiary, has completed a public offering of €750,000,000 aggregate principal amount of 3.375% notes due 2029 and €1,250,000,000 aggregate principal amount of 3.500% notes due 2032 (collectively, the "Notes"). The Notes are fully and unconditionally guaranteed by the Company. Application has been made for the Notes to be admitted to the Official List of the Irish Stock Exchange plc trading as Euronext Dublin and to trading on the Global Exchange Market thereof.

The Company intends to use the net proceeds from the offering of the Notes, together with borrowings under its commercial paper program and cash on hand, to finance the purchase price of the Company's previously announced agreement to acquire Axonics, Inc. and to pay related fees and expenses and, to the extent that the net proceeds from the offering of the Notes are not used for such purposes, to fund the repayment at maturity of the Company's 3.450% senior notes due March 2024 and to pay accrued and unpaid interest with respect to such notes, and for general corporate purposes.

About Boston Scientific
Boston Scientific transforms lives through innovative medical technologies that improve the health of patients around the world. As a global medical technology leader for more than 40 years, we advance science for life by providing a broad range of high-performance solutions that address unmet patient needs and reduce the cost of health care. Our portfolio of devices and therapies helps physicians diagnose and treat complex cardiovascular, respiratory, digestive, oncological, neurological and urological diseases and conditions. Learn more at www.bostonscientific.com and connect on LinkedIn and X, formerly Twitter.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "intend" and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding the intended use of proceeds. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the forward-looking statements expressed in this press release. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.

Risks and uncertainties that may cause such differences include, among other things: economic conditions, including the impact of foreign currency fluctuations; future U.S. and global political, competitive, reimbursement and regulatory conditions; geopolitical events; manufacturing, distribution and supply chain disruptions and cost increases; disruptions caused by cybersecurity events; disruptions caused by public health emergencies or extreme weather or other climate change-related events; labor shortages and increases in labor costs; variations in outcomes of ongoing and future clinical trials and market studies; new product introductions and the market acceptance of those products; market competition for our products; expected pricing environment; expected procedural volumes; the closing and integration of acquisitions; demographic trends; intellectual property rights; litigation; financial market conditions; the execution and effect of our restructuring program; the execution and effect of our business strategy, including our cost-savings and growth initiatives; our ability to achieve environmental, social and governance goals and commitments; and future business decisions made by us and our competitors. New risks and uncertainties may arise from time to time and are difficult to predict. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A – Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A – Risk Factors in Quarterly Reports on Form 10-Q we will file hereafter. We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements. This cautionary statement is applicable to all forward-looking statements contained in this press release.

CONTACTS:
Emily Anderson
Media Relations
(617) 515-2000 (office)
Emily.Anderson2@bsci.com

Lauren Tengler
Investor Relations
(508) 683-4479
BSXInvestorRelations@bsci.com

 

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SOURCE Boston Scientific Corporation

FAQ

What is the purpose of Boston Scientific Corporation's public offering of notes?

The purpose is to finance the acquisition of Axonics, Inc., pay related fees and expenses, fund the repayment of senior notes, pay accrued interest, and for general corporate purposes.

What is the total amount raised in the public offering of notes?

Boston Scientific Corporation raised a total of €2 billion in the public offering of notes.

What are the interest rates on the notes issued by Boston Scientific Corporation?

The notes issued have interest rates of 3.375% due in 2029 and 3.500% due in 2032.

What will Boston Scientific Corporation use the net proceeds from the offering for?

The net proceeds will be used to finance the acquisition of Axonics, Inc., repay senior notes, pay accrued interest, and for general corporate purposes.