Medtronic, Inc. (MDT) recently decided to offer its senior notes to the public. The offering includes $1.25 billion of 3.0% Senior Notes due 2015, $1.25 billion of 4.45% Senior Notes due 2020 and $500 million of 5.55% Senior Notes due 2040.

Medtronic will use the proceeds from the offering for working capital and general corporate purposes. This may include repayment of debt.

Medtronic recently reported third quarter fiscal 2010 earnings per share of 77 cents, narrowly beating the Zacks Consensus Estimate of 76 cents and the year-ago earnings of 71 cents.

Total revenues in the third quarter increased 10% year over year to $3.851 billion. Medtronic witnessed sales growth across all its seven business segments.

Cardiac Rhythm Disease Management (CRDM) revenues increased 6% year over year to $1.243 billion, driven by strong demand for implantable cardioverter defibrillators (ICDs). Spinal revenues increased 1% year over year to $842 million. Growth was fueled by higher demand for Biologics products.

CardioVascular revenues increased 28% year over year to $722 million. The increase in revenues can be attributed to strong sales growth across the company’s Coronary, Structural Heart Disease and Endovascular segments.

Neuromodulation revenues increased 11% year over year to $394 million, primarily due to higher sales of Activa PC, RC Deep Brain Stimulation systems and InterStim Therapy products.

Diabetes, Surgical Technologies and Physio-Control revenues increased 12%, 15% and 11% year over year to $311 million, $239 million and $100 million, respectively.

Medtronic is one of the world’s leading medical technology companies, specializing in implantable and interventional therapy devices and products. The company’s main competitors include St. Jude Medical (STJ) and Boston Scientific Corporation (BSX).
Presently, we are Neutral on Medtronic.
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