By Aleesia Forni
Virginia Beach, March 10 – Zimmer Holdings Inc. priced a $7.65 billion seven-part offering of senior notes (Baa3/BBB) on Tuesday, according to a market source.
The offering included $500 million of 1.45% two-year notes priced at Treasuries plus 80 basis points.
A $1.15 billion tranche of three-year notes priced at 95 bps over Treasuries.
A $1.5 billion tranche of 2.7% five-year notes sold at 110 bps over Treasuries.
There was also $750 million of 3.15% seven-year notes priced with a spread of Treasuries plus 125 bps.
A $2 billion tranche of 3.55% 10-year notes sold at 145 bps over Treasuries.
The company also priced $500 million of 4.25% 20-year notes at Treasuries plus 160 bps.
Finally, $1.25 billion of 4.45% 30-year bonds sold at 180 bps over Treasuries.
BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used to finance Zimmer’s acquisition of Biomet, Inc.
Zimmer, based in Warsaw, Ind., develops and markets reconstructive and spinal implants and trauma and related orthopedic surgical products.
| Issuer: | Zimmer Holdings Inc.
|
| Issue: | Senior notes
|
| Amount: | $7.65 billion
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC
|
| Trade date: | March 10
|
| Settlement date: | March 19
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $500 million
|
| Maturity: | April 1, 2017
|
| Coupon: | 1.45%
|
| Spread: | 80 bps over Treasuries
|
| Price talk: | 85 bps area over Treasuries, tightened from 95 bps area
|
|
|
| Three-year notes
|
| Amount: | $1.15 billion
|
| Maturity: | April 1, 2018
|
| Coupon: | 2%
|
| Spread: | 95 bps over Treasuries
|
| Price talk: | 100 bps area over Treasuries, tightened from 105 bps area
|
|
|
| Five-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | April 1, 2020
|
| Coupon: | 2.7%
|
| Spread: | 110 bps over Treasuries
|
| Price talk: | 115 bps area over Treasuries, tightened from 120 bps area
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Maturity: | April 1, 2022
|
| Coupon: | 3.15%
|
| Spread: | 125 bps over Treasuries
|
| Price talk: | 130 bps area over Treasuries, tightened from 135 bps area
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | April 1, 2025
|
| Coupon: | 3.55%
|
| Spread: | 145 bps over Treasuries
|
| Price talk: | 150 bps area over Treasuries, tightened from 155 bps area
|
|
|
| 20-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 15, 2035
|
| Coupon: | 4.25%
|
| Spread: | 160 bps over Treasuries
|
| Price talk: | 165 bps area over Treasuries, tightened from 170 bps area
|
|
|
| 30-year bonds
|
| Amount: | $1.25 billion
|
| Maturity: | Aug. 15, 2045
|
| Coupon: | 4.45%
|
| Spread: | 180 bps over Treasuries
|
| Price talk: | 185 bps area over Treasuries, tightened from 190 bps area
|
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