Kalamazoo, Michigan - March 3, 2016 - Stryker Corporation (NYSE:SYK) announced today that it has priced an offering to sell $3.5 billion of senior unsecured notes consisting of the following tranches (the "Notes"):
$750 million of 3-year fixed rate notes due March 8, 2019 bearing interest at 2.000% per year
$750 million of 5-year fixed rate notes due March 15, 2021 bearing interest at 2.625% per year
$1,000 million of 10-year fixed rate notes due March 15, 2026 bearing interest at 3.500% per year
$1,000 million of 30-year fixed rate notes due March 15, 2046 bearing interest at 4.625% per year
The Notes are expected to settle on March 10, 2016, subject to customary closing conditions.
The Company intends to use the net proceeds from the offering along with the Company's cash on hand to fund the previously announced acquisitions of Sage Products, LLC and Physio-Control International Inc., to repay all of the Company's 2.00% Notes due September 30, 2016 at their maturity and for general corporate purposes.
Citigroup Global Markets Inc., Goldman, Sachs & Co., J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated are acting as active joint book-running managers for the offering. This offering was made pursuant to a prospectus supplement to the Company's prospectus, dated February 12, 2016, filed as part of the Company's effective shelf registration statement. Copies of the preliminary prospectus supplement and accompanying prospectus relating to the notes may be obtained by contacting the joint book-running managers: Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by calling 1-800-831-9146, or by emailing prospectus@citi.com ; Goldman, Sachs & Co., Attention: Prospectus Department, 200 West Street, New York, NY 10282, or by calling 1-866-471-2526, or by emailing prospectus-ny@ny.email.gs.com; J.P. Morgan Securities LLC, Attention: Investment Grade Syndicate Desk, 3rd Floor, 383 Madison Avenue, New York, NY, 10179, or by calling 1-212-834-4533 (collect); and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Attention: Prospectus Department, 222 Broadway, 11th Floor, New York, NY 10038, or by calling 1-800-294-1322, or by emailing dg.prospectus_requests@baml.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
Forward-looking statements
This press release contains information that includes or is based on forward-looking statements within the meaning of the federal securities law that are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: weakening of economic conditions that could adversely affect the level of demand for our products; pricing pressures generally, including cost-containment measures that could adversely affect the price of or demand for our products; changes in foreign exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect U.S. Food and Drug Administration approval of new products; changes in reimbursement levels from third-party payors; a significant increase in product liability claims; the ultimate total cost with respect to the Rejuvenate and ABG II matter; the impact of investigative and legal proceedings and compliance risks; resolution of tax audits; the impact of the federal legislation to reform the United States healthcare system; changes in financial markets; changes in the competitive environment; our ability to integrate acquisitions; and our ability to realize anticipated cost savings. Additional information concerning these and other factors is contained in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K.
Stryker is one of the world's leading medical technology companies and, together with our customers, we are driven to make healthcare better. The Company offers a diverse array of innovative products and services in Orthopaedics, Medical and Surgical, and Neurotechnology and Spine that help improve patient and hospital outcomes. Stryker is active in over 100 countries around the world.
Contacts
For investor inquiries please contact:
Katherine A. Owen, Stryker Corporation, 269-385-2600 or katherine.owen@stryker.com
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