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Prospect News home > News index > List of issuers Z > Headlines for Zimmer Holdings, Inc. > News item |
S&P rates Zimmer loans A-, BBB
Standard & Poor's said it assigned an A- issue-level rating to Zimmer Holdings Inc.'s proposed $1.35 billion senior unsecured revolving credit facility.
The revolver, which matures in five years, will replace the company's existing revolver. Co-issuers for this facility are Zimmer K.K. and Zimmer Investment Luxembourg SARL.
The rating was placed on CreditWatch with negative implications along with Zimmer's existing debt ratings and corporate credit rating.
At the same time, S&P assigned a BBB rating to Zimmer's $3 billion term loan, which is contingent upon the consummation of the merger with Biomet Inc., and will mature in five years from that event.
The term loan, along with $7.66 billion senior unsecured notes, will be used to repay a 364-day bridge facility (if drawn), reduce a portion of outstanding debt and fund transaction costs associated with the acquisition of Biomet Inc.
The financing is contingent upon the merger, which we expect to be completed in late 2014 or early 2015.
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