Baxter International Inc. has initiated tender offers to buy back its 2.600 % senior unsecured notes due 2026 and up to $300 million of its 1.915 % senior unsecured notes due 2027. The 2026 notes total $750 million in outstanding principal, while the 2027 notes amount to $1.45 billion, of which the company will repurchase a maximum of $300 million. The offers are expected to be funded by proceeds from a concurrent new senior unsecured notes issuance, allowing Baxter to use the same capital to reduce debt rather than raise additional cash.
The move is part of Baxter’s broader deleveraging strategy that followed the January 2025 sale of its Kidney Care business to Carlyle for $3.8 billion. By repurchasing these notes, the company aims to lower its net debt and bring its net debt‑to‑EBITDA ratio closer to the 3× target it set for the end of 2026. The tender offers also help shift the maturity profile of the company’s debt, reducing interest expense and improving financial flexibility for future investments.
The tender offers include an early‑tender payment of $30 per $1,000 of principal, plus accrued interest. Fixed spreads of 30 basis points apply to the 2026 notes and 40 basis points to the 2027 notes. The price determination date is December 4 2025; the anticipated early settlement date is December 8, 2025, and the final payment is scheduled for December 22, 2025. The offers expire on December 18, 2025, with an early‑tender deadline of December 3, 2025.
Proceeds from the new notes offering will first be used to fund the tender offers. Any remaining proceeds will repay other indebtedness, including the outstanding term‑loan credit facility, which stood at $645 million as of September 30 2025. This repayment plan directly reduces net debt and supports the company’s leverage objectives.
Baxter’s CEO, Andrew Hider, has emphasized that the company’s focus remains on sustainable growth and operational improvement. The debt‑repurchase program signals confidence in the firm’s cash‑flow generation and its ability to meet financial obligations while pursuing strategic initiatives. The tender offers are expected to be well‑received by bondholders, as they provide a premium over market rates and align with the company’s long‑term capital‑structure goals.
Baxter’s balance‑sheet strengthening is expected to improve credit metrics and potentially enhance its credit ratings, positioning the company for future financing at more favorable terms. The tender offers also demonstrate proactive management of debt maturity risk, a key concern for investors monitoring the company’s financial health.
Baxter’s net debt reduction aligns with its broader transformation strategy, which includes divesting non‑core assets and focusing on high‑margin core businesses. The tender offers are a tangible step toward that strategy, reinforcing the company’s commitment to delivering long‑term value to stakeholders.
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