MARLBOROUGH, Mass.,
May 12, 2015 /PRNewswire/
-- Boston Scientific Corporation (NYSE: BSX) completed a
public offering of $1.85 billion
aggregate principal amount of its senior notes under the company's
shelf registration statement. The public offering consists of
$600 million of 2.850% notes due
May 15, 2020, $500 million of 3.375% notes due May 15, 2022, and $750
million of 3.850% notes due May 15,
2025.
The company previously announced that it intends to use the net
proceeds from the offering, together with borrowings under its
$750 million five-year term loan
facility, to (i) pay the purchase price of the American Medical
Systems urology portfolio (the "AMS Portfolio Acquisition") and to
pay related fees and expenses and (ii) redeem all or a portion of
its (a) 5.500% notes due November
2015, of which $400 million
aggregate principal amount was outstanding as of the date hereof
(the "November 2015 Notes," and (b)
6.400% notes due June 2016, of which
$600 million aggregate principal
amount was outstanding as of the date hereof (the "June 2016 Notes"), and to pay related fees,
expenses and premiums. Following the completion of the offering,
the company will provide the trustee with redemption notices to
redeem all of the November 2015 Notes
and the June 2016 Notes on
June 11, 2015. The company
expects to record an after-tax charge of approximately $0.02 per share during the second quarter of 2015
associated with the redemption, which the company noted was not
included in the company's previously announced GAAP earnings
guidance. This charge will not impact the company's adjusted
earnings. The AMS Portfolio Acquisition is expected to close in the
third quarter of 2015, subject to customary closing conditions.
About Boston Scientific
Boston Scientific transforms
lives through innovative medical solutions that improve the health
of patients around the world. As a global medical technology
leader for more than 35 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 healthcare.
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 and Section 21E of the Securities Exchange Act of
1934. 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 our offering and intended use of proceeds, the timing of
closing of the AMS Portfolio Acquisition and our redemption of
certain notes and expected charge associated therewith. 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 risks and
uncertainties, in some cases, have affected and in the future could
affect our ability to implement our business strategy and may cause
actual results to differ materially from those contemplated by the
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: future economic, competitive, reimbursement and
regulatory conditions; new product introductions; demographic
trends; the closing and integration of acquisitions;
intellectual property; litigation; financial market conditions; and
future business decisions made by us and our competitors. 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 IA - 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
have filed or will file hereafter. We disclaim any intention
or obligation to publicly update or revise any forward-looking
statement 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.
Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements presented on
a GAAP basis, we disclose certain non-GAAP financial measures
including adjusted earnings per share. Adjusted earnings per share
excludes goodwill and intangible asset impairment charges;
acquisition-, divestiture-, litigation- and restructuring-related
charges and credits; certain discrete tax items; debt
extinguishment expenses and amortization expense. Non-GAAP
measures such as adjusted earnings per share are not in accordance
with generally accepted accounting principles in the United
States. The GAAP financial measure most directly comparable
to adjusted earnings per share is GAAP earnings per share.
The difference between our estimated impact of the offer on our
GAAP and adjusted earnings per share relates to the debt
extinguishment charge. These amounts are excluded by the
Company for purposes of measuring adjusted earnings per share.
Management uses adjusted earnings per share along with other
supplemental non-GAAP measures to evaluate performance period over
period, to analyze the underlying trends in our business, to assess
its performance relative to its competitors, and to establish
operational goals and forecasts that are used in allocating
resources. Non-GAAP financial measures, including adjusted
earnings per share, should not be considered in isolation from or
as a replacement for GAAP financial measures. We believe that
presenting non-GAAP financial measures in addition to GAAP
financial measures provides investors greater transparency to the
information used by our management for its financial and
operational decision-making and allows investors to see our results
"through the eyes" of management. We further believe that
providing this information better enables our investors to
understand our operating performance and to evaluate the
methodology used by management to evaluate and measure such
performance.
CONTACT:
Kelly Leadem
508-683-5543 (office)
Global Media Relations
Boston Scientific Corporation
media@bsci.com
Susie Lisa, CFA
508-683-5565 (office)
Investor Relations
Boston Scientific Corporation
investor_relations@bsci.com
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SOURCE Boston Scientific Corporation