Priya PatelTLDR:
- Boston Scientific priced a €2 billion offering of senior notes to finance the acquisition of Axonics Modulation Technologies.
- The offering includes two tranches of notes due in 2029 and 2032, fully guaranteed by the company.
In a move to finance its acquisition of Axonics Modulation Technologies, Boston Scientific priced an offering of senior notes worth nearly $2.2 billion (€2 billion). The offering, led by American Medical Systems Europe B.V., includes €750,000,000 aggregate principal amount of 3.375% notes due in 2029 and €1,250,000,000 aggregate principal amount of 3.500% notes due in 2032, fully guaranteed by the company. The net proceeds of the offering will be used to fund the $3.7 billion acquisition of Axonics Modulation Technologies, a company specializing in neuromodulation systems for urinary and bowel dysfunction treatment.
Axonics’ fourth-generation R20 rechargeable sacral neuromodulation (SNM) system, which received FDA approval about a year ago, and the recharge-free F15 SNM system launched in mid-2022, are key products that Boston Scientific seeks to integrate into its portfolio. The company plans to use the funds raised from the offering to complete the acquisition in the first half of the year, along with covering related fees and expenses.
The offering is expected to close on Feb. 27, subject to customary conditions, and will also be used for funding the repayment of existing senior notes due in March 2024, as well as for general corporate purposes. Boston Scientific aims to further strengthen its position in the neuromodulation market through this acquisition and financing strategy.
