Published on 3/8/2018 in the Prospect News Investment Grade Daily.
New Issue: Zimmer Biomet sells $750 million of notes in two tranches
By Devika Patel
Knoxville, Tenn., March 8 – Zimmer Biomet Holdings, Inc. priced $750 million of notes (Baa3/BBB) in two tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $450 million of three-year floating-rate notes at par with a coupon of Libor plus 75 basis points.
Zimmer also sold $300 million of 3.7% five-year notes with a spread of Treasuries plus 110 bps. These notes priced at 99.842 to yield 3.735%.
BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities LLC and SMBC Nikko are the bookrunners.
Proceeds will be used with borrowings under the company’s senior unsecured credit facility and cash on hand to repay at maturity Zimmer’s $1.15 billion of 2% notes due April 1, 2018.
Zimmer Biomet, based in Warsaw, Ind., designs, manufactures and markets orthopedic reconstructive and other products.
| Issuer: | Zimmer Biomet Holdings, Inc.
|
| Amount: | $750 million
|
| Description: | Floating-rate notes, fixed-rate notes
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities LLC and SMBC Nikko
|
| Senior co-managers: | BMO Capital Markets Corp., BNP Paribas Securities Corp., DnB NOR Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., RBC Capital Markets Corp. and U.S. Bancorp Investments Inc.
|
| Co-managers: | Academy Securities, Inc., DZ Financial Markets LLC, Goldman Sachs & Co., Lloyds Securities Inc., Loop Capital Markets LLC, PNC Capital Markets LLC, TD Securities (USA) LLC, Williams Capital Group LP and UniCredit Capital Markets LLC
|
| Trade date: | March 8
|
| Settlement date: | March 19
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Floaters due 2021
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| Amount: | $450 million
|
| Maturity: | March 19, 2021
|
| Coupon: | Libor plus 75 bps
|
| Price: | Par
|
| Yield: | Libor plus 75 bps
|
| Call: | At par after March 20, 2019
|
|
|
| Notes due 2023
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| Amount: | $300 million
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| Maturity: | March 19, 2023
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| Coupon: | 3.7%
|
| Price: | 99.842
|
| Yield: | 3.735%
|
| Spread: | Treasuries plus 110 bps
|
| Call: | Make-whole call until April 1, 2046 at Treasuries plus 25 basis points, thereafter at par
|
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