Long-Term Debt and Short-Term Borrowings

9 Months Ended

Sep. 30, 2015

Long-Term Debt and Short-Term Borrowings

Long-Term Debt and Short-Term Borrowings

NOTE 7.  Long-Term Debt and Short-Term Borrowings

The Company has a “well-known seasoned issuer” shelf registration statement, effective May 16, 2014, which registers an indeterminate amount of debt or equity securities for future sales. This replaced 3M’s previous shelf registration dated August 5, 2011. In June 2014, as discussed in Note 9 in 3M’s 2014 Annual Report on Form 10-K, in connection with the May 16, 2014, shelf registration, 3M re-commenced its medium-term notes program (Series F) under which 3M may issue, from time to time, up to $9 billion aggregate principal amount of notes.

In May 2015, 3M issued 650 million Euros aggregate principal amount of five-year floating rate medium term notes due 2020 with an interest rate based on a floating three-month EURIBOR index, 600 million Euros aggregate principal amount of eight-year fixed rate medium-term notes due 2023 with a coupon rate of 0.95%, and 500 million Euros aggregate principal amount of fifteen-year fixed rate medium-term notes due 2030 with a coupon rate of 1.75%. As discussed in Note 9, the May 2015 debt issuances were designated in net investment hedges. In August 2015, 3M issued $450 million aggregate principal amount of three-year fixed rate medium-term notes due 2018 with a coupon rate of 1.375%,  $500 million aggregate principal amount of five-year fixed rate medium-term notes due 2020 with a coupon rate of 2.0%, and $550 million aggregate principal amount of 10-year fixed rate medium-term notes due 2025 with a coupon rate of 3.0%. Upon debt issuance, the Company entered into two interest rate swaps; the first converted the entire $450 million three-year fixed rate note, and the second converted $300 million of the five-year fixed rate note to an interest rate based on a floating three-month LIBOR index. The May 2015 and August 2015 debt issuances were from the medium-term notes program (Series F). As of September 30, 2015, the total amount of debt issued as part of the medium-term note program (Series F), inclusive of debt issued in 2011, 2012, 2014 and the 2015 debt referenced above, is approximately $8.17 billion (utilizing the foreign exchange rate applicable at the time of issuance for the Euro denominated debt).