Published on 3/20/2013 in the Prospect News Investment Grade Daily.
New Issue: Stryker sells $1 billion of bonds in five-, 30-year tranches
By Andrea Heisinger
New York, March 20 - Stryker Corp. priced $1 billion of notes (A3/A+/) in two parts on Wednesday, a market source said.
A $600 million tranche of 1.3% five-year notes sold at 99.565 to yield 1.39% with a spread of Treasuries plus 60 basis points. There is a make-whole call at Treasuries plus 10 bps.
The second part was $400 million of 4.1% 30-year bonds priced at 99.588 to yield 4.183% with a spread of 100 bps over Treasuries. The bonds have a make-whole call at Treasuries plus 15 bps to Oct. 1, 2042 and a par call after that date.
There is a change-of-control put on both tranches at 101%.
Barclays, BofA Merrill Lynch and Goldman Sachs & Co. were the bookrunners.
Proceeds will be used for working capital and other general corporate purposes.
Stryker, a medical technology company based in Kalamazoo, Mich., was last in the market with a $750 million sale of 2% five-year notes priced at 115 bps over Treasuries on Sept. 13, 2011.
| Issuer: | Stryker Corp.
|
| Issue: | Notes
|
| Amount: | $1 billion
|
| Bookrunners: | Barclays, BofA Merrill Lynch, Goldman Sachs & Co.
|
| Senior co-managers: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Co-managers: | Mitsubishi UFJ Securities (USA) Inc., HSBC Securities (USA) Inc., RBS Securities Inc., U.S. Bancorp Investments Inc., Mizuho Securities (USA) Inc., Williams Capital Group LP, PNC Capital Markets LLC
|
| Change-of-control put: | 101%
|
| Trade date: | March 20
|
| Settlement date: | March 25
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A+
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | April 1, 2018
|
| Coupon: | 1.3%
|
| Price: | 99.565
|
| Yield: | 1.39%
|
| Spread: | Treasuries plus 60 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
|
|
| 30-year bonds
|
| Amount: | $400 million
|
| Maturity: | April 1, 2043
|
| Coupon: | 4.1%
|
| Price: | 99.588
|
| Yield: | 4.183%
|
| Spread: | Treasuries plus 100 bps
|
| Call: | Make-whole at Treasuries plus 15 bps to Oct. 1, 2042
|
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