BoAML underwrites Medtronic's $16.3 billion bridge loan

Tue Jun 17, 2014 10:57am EDT
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By Tessa Walsh and Leela Parker

LONDON (Reuters) - U.S. medical device maker Medtronic Inc (MDT.N: Quote) is raising a $16.3 billion senior unsecured bridge loan to finance its $42.9 billion acquisition of Dublin-based Covidien Plc COV.N, banking sources said on Tuesday.

Bank of America Merrill Lynch (BoAML) is the sole initial bookrunner of the deal, which is one of the bank’s biggest loan underwriting commitments to date, and is also acting as the sole lead arranger and sole bookrunner, a senior banker close to the deal said.

Medtronic agreed to buy Dublin-based Covidien Plc and shift its executive headquarters to Ireland on June 15 in the latest move by U.S. firms to access lower corporate tax rates abroad.

Medtronic was not immediately available for comment.

BoAML’s $16.3 billion sole underwriting is bigger than its $15.25 billion share of the $61 billion bridge loan that backed Verizon’s (VZ.N: Quote) acquisition of Verizon Wireless in September 2013, which was underwritten by four banks.

BoAML was also the sole underwriter of a $4 billion loan for Swiss engineering group ABB’s ABBN.VX acquisition of US electrical connectors manufacturer Thomas & Betts in March 2012.


Medtronic Chairman and Chief Executive Omar Ishrak speaks at the Reuters Health Summit in New York in this file photo taken May 7, 2013. REUTERS/Brendan McDermid