By Angela McDaniels
Tacoma, Wash., Nov. 7 - Zimmer Holdings, Inc. priced $550 million of notes in two tranches, according to an FWP filing with the Securities and Exchange Commission.
A $250 million tranche of 1.4% notes due 2014 priced at 99.928 to yield 1.424%, or Treasuries plus 105 basis points.
The notes have a make-whole call at Treasuries plus 15 bps.
A $300 million tranche of 3.375% notes due 2021 priced at 99.821 to yield 3.396%. The spread is Treasuries plus 140 bps.
The tranche has a make-whole call at Treasuries plus 20 bps prior to Aug. 30, 2021 and is callable at par beginning Aug. 30, 2021.
For both tranches, the company must offer to repurchase the notes at 101% if a change of control occurs.
The bookrunners were Bank of America Merrill Lynch, BNP Paribas Securities Corp. and RBS Securities Inc.
The senior co-managers were J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Mitsubishi UFJ Securities (USA), Inc.
The co-managers were Deutsche Bank Securities Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., ING Financial Markets LLC, Mizuho Securities USA Inc., SMBC Nikko Capital Markets Ltd., Wells Fargo Securities LLC.
The company said it will use the proceeds to repay $350 million of borrowings under its $1.35 billion senior revolving credit facility and for general corporate purposes.
Zimmer is a Warsaw, Ind.-based maker of orthopedic reconstructive, spinal and trauma devices, dental implants and related surgical products.
| Issuer: | Zimmer Holdings, Inc.
|
| Issue: | Notes
|
| Amount: | $550 million
|
| Bookrunners: | Bank of America Merrill Lynch, BNP Paribas Securities Corp., RBS Securities Inc.
|
| Senior co-managers: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Mitsubishi UFJ Securities (USA), Inc.
|
| Co-managers: | Deutsche Bank Securities Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., ING Financial Markets LLC, Mizuho Securities USA Inc., SMBC Nikko Capital Markets Ltd., Wells Fargo Securities, LLC
|
| Change-of-control put: | At 101%
|
| Pricing date: | Nov. 7
|
| Settlement date: | Nov. 10
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
|
|
| Three-year notes
|
| Amount: | $250 million
|
| Maturity: | Nov. 30, 2014
|
| Coupon: | 1.4%
|
| Price: | 99.928
|
| Yield: | 1.424%
|
| Spread: | 105 bps
|
| Call option: | Make-whole call at Treasuries plus 15 bps
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Nov. 30, 2021
|
| Coupon: | 3.375%
|
| Price: | 99.821
|
| Yield: | 3.396%
|
| Spread: | 140 bps
|
| Call option: | Make-whole call at Treasuries plus 20 bps prior to Aug. 30, 2021, at par beginning Aug. 30, 2021
|
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