Zimmer Biomet enters $900 million two-year multi-draw term loan

By Wendy Van Sickle

Columbus, Ohio, Dec. 20 – Zimmer Biomet Holdings, Inc. entered into a $900 million two-year unsecured multi-draw term loan facility on Dec. 14, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings bear interest at Libor plus 87.5 basis points.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are the joint lead arrangers and bookrunners. Bank of America, NA is the administrative agent.

At closing, the company drew $675 million of the term loan, which it used to fully repay the $295 million balance on its term loan agreement dated May 29, 2014; to repay $375 million of the $600 million balance of its term loan agreement dated Sept. 30, 2016; and for general corporate purposes and transaction costs.

Zimmer plans to borrow the remaining $225 million of the new term loan in January to repay the then-remaining balance of the $600 million term loan.

The company is required to maintain a maximum consolidated leverage ratio of 4.5x. If Zimmer were to not maintain its investment grade standing, additional limitations would apply.

Zimmer Biomet, based in Warsaw, Ind., designs, manufactures and markets orthopedic reconstructive and other products.

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