Financing Arrangements

9 Months Ended

Jan. 24, 2020

Commercial Paper

The Company maintains a commercial paper program that allows the Company to have a maximum of $3.5 billion in commercial paper outstanding. No commercial paper was outstanding at both January 24, 2020 and April 26, 2019. The issuance of commercial paper reduces the amount of credit available under the Company’s existing Credit Facility, as defined below.

Line of Credit

The Company has a $3.5 billion five-year unsecured revolving credit facility (Credit Facility) which provides back-up funding for the commercial paper program described above. At January 24, 2020 and April 26, 2019, no amounts were outstanding under the Credit Facility.

Interest rates on advances on the Credit Facility are determined by a pricing matrix, based on the Company’s long-term debt ratings, assigned by Standard & Poor’s Ratings Services and Moody’s Investors Service. Facility fees are payable on the Credit Facility and are determined in the same manner as the interest rates. The agreement also contains customary covenants, all of which the Company was in compliance with at January 24, 2020.

Debt Obligations

The Company's debt obligations consisted of the following:


(in millions)	Maturity by Fiscal Year	January 24, 2020		April 26, 2019
Current debt obligations	2020 - 2021	$	844	$	838

Long-term debt
0.000 percent two-year 2019 senior notes	2021	1,662		1,681
Floating rate two-year 2019 senior notes	2021	831		560
4.125 percent ten-year 2011 senior notes	2021	—		500
3.150 percent seven-year 2015 senior notes	2022	1,534		2,500
3.125 percent ten-year 2012 senior notes	2022	—		675
3.200 percent ten-year 2012 CIFSA senior notes	2023	650		650
0.375 percent four-year 2019 senior notes	2023	1,662		1,681
2.750 percent ten-year 2013 senior notes	2023	530		530
0.000 percent four-year 2019 senior notes	2023	831		—
2.950 percent ten-year 2013 CIFSA senior notes	2024	310		310
3.625 percent ten-year 2014 senior notes	2024	432		850
3.500 percent ten-year 2015 senior notes	2025	2,700		4,000
0.250 percent seven-year 2019 senior notes	2026	1,108		—
1.125 percent eight-year 2019 senior notes	2027	1,662		1,681
3.350 percent ten-year 2017 senior notes	2027	368		850
1.625 percent twelve-year 2019 senior notes	2031	1,108		1,121
1.000 percent thirteen-year 2019 senior notes	2032	1,108		—
4.375 percent twenty-year 2015 senior notes	2035	1,931		2,382
6.550 percent thirty-year 2007 CIFSA senior notes	2038	253		284
2.250 percent twenty-year 2019 senior notes	2039	1,108		1,121
6.500 percent thirty-year 2009 senior notes	2039	158		183
5.550 percent thirty-year 2010 senior notes	2040	224		306
1.500 percent twenty-year 2019 senior notes	2040	1,108		—
4.500 percent thirty-year 2012 senior notes	2042	105		129
4.000 percent thirty-year 2013 senior notes	2043	305		325
4.625 percent thirty-year 2014 senior notes	2044	127		177
4.625 percent thirty-year 2015 senior notes	2045	1,813		1,963
1.750 percent thirty-year 2019 senior notes	2050	1,108		—
Bank borrowings	2021 - 2022	70		83
Debt (discount) premium, net	2020 - 2050	(15)		29
Finance lease obligations	2021 - 2033	47		10
Interest rate swaps	N/A	—		9
Deferred financing costs	2020 - 2050	(106)		(104)
Long-term debt		$	24,732	$	24,486

Senior Notes

The Company has outstanding unsecured senior obligations, described as senior notes in the tables above (collectively, the Senior Notes). The Senior Notes rank equally with all other unsecured and unsubordinated indebtedness of the Company. The indentures under which the Senior Notes were issued contain customary covenants, all of which the Company remained in compliance with at January 24, 2020.

In June 2019, Medtronic Luxco issued six tranches of Euro-denominated Senior Notes with an aggregate principal of €5.0 billion, with maturities ranging from fiscal year 2021 to fiscal year 2050, resulting in cash proceeds of approximately $5.6 billion, net of discounts and issuance costs. The issuance included €250 million of floating rate Senior Notes due in fiscal year 2021, €750 million of 0.000 percent Senior Notes due in fiscal year 2023, €1.0 billion of 0.250 percent Senior Notes due in fiscal year 2026, €1.0 billion of 1.000 percent Senior Notes due in fiscal year 2032, €1.0 billion of 1.500 percent Senior Notes due in fiscal year 2040, and €1.0 billion of 1.750 percent Senior Notes due in fiscal year 2050. The Company used the net proceeds of the offering to fund the cash tender offer and early redemption, described below. The Euro-denominated debt is designated as a net investment hedge of certain of the Company's European operations. Refer to Note 8 for additional information regarding the net investment hedge.

The Company completed the cash tender offer of $4.6 billion of Medtronic Inc., CIFSA, and Medtronic Luxco Senior Notes for $5.0 billion of total consideration in July 2019. The Company recognized a loss on debt extinguishment of $413 million during the first quarter of fiscal year 2020, which primarily included cash premiums and accelerated amortization of deferred financing costs and debt discounts and premiums. The loss on debt extinguishment also included a $16 million charge for the estimated early redemption premium for $533 million of senior notes which were redeemed in August 2019. The loss on debt extinguishment was recognized in interest expense in the consolidated statements of income.

Financial Instruments Not Measured at Fair Value

At January 24, 2020, the estimated fair value of the Company’s Senior Notes was $27.5 billion compared to a principal value of $25.2 billion. At April 26, 2019, the estimated fair value was $26.2 billion compared to a principal value of $25.0 billion. The fair value was estimated using quoted market prices for the publicly registered Senior Notes, which are classified as Level 2 within the fair value hierarchy. The fair values and principal values consider the terms of the related debt and exclude the impacts of debt discounts and hedging activity.