Medtronic 2016 Annual Report Download - page 62

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Table of Contents
59
Ratings Services and Moody's refer to "Liquidity and Capital Resources" section of this Management's Discussion and Analysis.
Facility fees are payable on the credit facility and are determined in the same manner as the interest rates. The agreements also
contain customary covenants, all of which we remain in compliance with as of April 29, 2016.
We utilize Senior Notes that are unsecured, senior obligations that rank equally with all other secured and unsubordinated
indebtedness to meet our long-term financing needs. We use the net proceeds from the sale of the Senior Notes primarily for
working capital and general corporate purposes and in the case of Senior Notes issued on December 10, 2014, to finance the
Covidien acquisition and related expenses. Long-term debt as of April 29, 2016 was $30.2 billion compared to $33.8 billion as of
April 24, 2015. The decrease is primarily due to the cash tender offer and redemption of $2.7 billion of senior notes for $3.0 billion
of total consideration in April 2016, as discussed within the “Liquidity and Capital Resources" section of this Management’s
Discussion and Analysis. The indentures under which the Senior Notes have been issued contain customary covenants, all of which
we remain in compliance with as of April 29, 2016.
On December 10, 2014, we issued seven tranches of the 2015 Senior Notes with an aggregate face value of $17.0 billion. In
addition, on January 26, 2015, we also borrowed $3.0 billion for a term of three years under a term loan agreement. We used these
combined proceeds to fund the $16.0 billion cash consideration portion of the Covidien acquisition, to pay certain transaction and
financing expenses, and for working capital and general corporate purposes.
For additional information regarding our debt agreements, refer to Note 7 of the consolidated financial statements in “Item 8.
Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.