Biomet details new $2.565 billion three-part note offering backing LBO

By Paul A. Harris

St. Louis, May 24 - Structure emerged Thursday on Biomet, Inc.'s $2.565 billion bond offering, which is expected to come to market in June, according to a market source.

The Warsaw, Ind., musculoskeletal products company is expected to come to market with a $775 million tranche of senior notes (B3/B-), a $775 million tranche of senior pay-in-kind notes (B3/B-) and a $1.1015 billion tranche of senior subordinated notes (Caa1/B-).

Banc of America Securities LLC is leading the deal in a syndicate of investment banks that will include Goldman Sachs & Co., Bear Stearns & Co., Lehman Brothers and Wachovia Securities.

The company is also putting in place $4.35 billion of credit facilities.

Proceeds will be used to finance the leveraged buyout of the company by the Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts & Co. and TPG in a transaction with a total equity value of about $10.9 billion, expected to be completed by Oct. 31.

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