Published on 9/24/2007 in the Prospect News High Yield Daily.
New Issue: Biomet prices $2.35 billion of notes in three tranches
By Paul A. Harris
St. Louis, Sept. 24 - Biomet Inc. priced $2.35 billion of 10-year high-yield notes on Friday, according to an informed source.
Banc of America Securities LLC was the bookrunner for the Rule 144A transaction.
The company priced $718.76 million of senior cash-pay notes (B3/B-) at par to yield 10%.
In addition Biomet priced $688.76 million of senior PIK toggle notes (B3/B-) at par to yield 10 3/8%. The toggle notes have a cash-pay coupon of 10 3/8%. The coupon steps up by 75 basis points to 11 1/8% should the issuer elect to make an in-kind, as opposed to cash, interest payment.
The company also priced $940.70 million of senior subordinated notes (Caa1/B-) at par to yield 11 1/8%.
No price talk was set for any of the tranches, according to the informed source.
Proceeds will be used to fund the leveraged buyout of Biomet by the Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts & Co. and TPG.
The issuer is a Warsaw, Ind., designer and manufacturer of musculoskeletal medical products.
| Issuer: | Biomet Inc.
|
| Amount: | $2,348,000,000 (approximate)
|
| Maturity: | Oct. 15, 2017
|
| Bookrunner: | Banc of America Securities LLC
|
| Trade date: | Sept. 21
|
| Settlement date: | Sept. 25
|
| Distribution: | Rule 144A
|
|
|
| Senior cash-pay notes
|
| Amount: | $718,758,000
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Spread: | 537 bps
|
| Call protection: | Treasuries plus 50 bps make-whole Until Oct. 15, 2012, then callable at 105.0, 103.333, 1.667, par on and after Oct. 15, 2015
|
| Equity clawback: | Until Oct. 15, 2010 for 35% at 110.0
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
|
|
| Senior PIK toggle notes
|
| Amount: | $688,758,000
|
| Cash coupon: | 10 3/8%
|
| PIK coupon: | 11 1/8%
|
| Price: | Par
|
| Yield: | 10 3/8%
|
| Spread: | 575 bps
|
| Call protection: | Treasuries plus 50 bps until Oct. 15, 2012, then callable at 105.563, 103.708, 101.854, par on and after Oct. 15, 2015
|
| Equity clawback: | Until Oct. 15, 2010 for 35% at 110.375
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
|
|
| Senior subordinated notes
|
| Amount: | $940,698,000
|
| Coupon: | 11 5/8%
|
| Price: | Par
|
| Yield: | 11 5/8%
|
| Spread: | 700 bps
|
| Call protection: | Treasuries plus 50 bps until Oct. 15, 2012, then callable at 105.813, 103.875, 101.938, par on and after Oct. 15, 2015
|
| Equity clawback: | Until Oct. 15, 2010 for 35% at 110.625
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
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