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Covidien prices offering of $1.5B in senior notes

Tue, 06/22/2010 - 4:45am
The Associated Press

Irish drug and medical device maker Covidien PLC has priced an offering of senior notes totaling $1.5 billion, which it will use to help pay for the acquisition of medical device maker ev3 Inc.

Covidien said late Monday its subsidiary, Covidien International Finance SA, is offering $500 million in 1.875 percent senior three-year notes, $400 million in 2.8 percent five-year senior notes and $600 million in 4.2 percent 10-year senior notes.

The offering will close June 28. Morgan Stanley & Co. Inc., Barclays Capital Inc. and Goldman Sachs & Co. are acting as joint book-running managers.

Covidien, based in Dublin, Ireland, said June 1 it would buy ev3 for $2.6 billion in cash in a deal that could help it improve sales growth.

Ev3's devices are used in endovascular surgeries, operations in which surgeons make small incisions and maneuver devices in the body through major blood vessels. It also makes stents and balloon catheters, which are used to open arteries that have been blocked by fatty plaque.

The company expects $520 million to $530 million in revenue this year.

The boards of both companies have approved the deal.

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