By Andrea Heisinger
New York, Nov. 12 - Zimmer Holdings, Inc. priced $1 billion of senior notes (Baa1/A-/) in two tranches on Thursday.
The $500 million of 4.625% 10-year notes priced at 99.926 to yield 4.634% with a spread of Treasuries plus 118 basis points. There is a make-whole call at Treasuries plus 20 bps.
A $500 million tranche of 5.75% 30-year notes priced at 99.826 to yield 5.762%, or Treasuries plus 135 bps. The notes have a make-whole call at 25 bps over Treasuries.
Both tranches of notes feature a change-of-control put of 101%.
Bank of America Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. were active bookrunners. BNP Paribas Securities Corp., Credit Suisse Securities and RBS Securities Inc. were passive bookrunners.
Co-managers were Mitsubishi UFJ Securities, Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., Daiwa Securities America Inc., Mizuho Securities, Fifth Third Securities and HSBC Securities.
Proceeds will be used to repay the balance of a $1.35 billion credit facility and for general corporate purposes, including the financing of a stock repurchase program.
The medical products company is based in Warsaw, Ind.
| Issuer: | Zimmer Holdings, Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $1 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities Inc. (active), BNP Paribas Securities Corp., Credit Suisse Securities, RBS Securities Inc. (passive)
|
| Co-managers: | Mitsubishi UFJ Securities, Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., Daiwa Securities America Inc., Mizuho Securities, Fifth Third Securities, HSBC Securities
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 12
|
| Settlement date: | Nov. 17
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 30, 2019
|
| Coupon: | 4.625%
|
| Price: | 99.926
|
| Yield: | 4.634%
|
| Spread: | Treasuries plus 118 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 30, 2039
|
| Coupon: | 5.75%
|
| Price: | 99.826
|
| Yield: | 5.762%
|
| Spread: | Treasuries plus 135 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
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