November 17, 2014 by Brad Perriello
Medtronic is reportedly preparing to float $10 billion worth of bonds to help fund its $43 billion acquisition of Covidien.
Medtronic (NYSE:MDT) is preparing to float about $10 billion in bonds to help fund the $43 billion merger withCovidien (NYSE:COV), according to the Wall Street Journal, citing “people familiar with the sale.”
Fridley, Minn.-based Medtronic originally planned to use some $13.5 billion in overseas cash in the Covidien buyout, scheduled to close early next year.
But new U.S. Treasury rules over so-called inversion deals pushed Medtronic to change its structure for the deal. The plan now is for the company to raise about $16 billion in external debt.
