Zimmer Biomet (NYSE:ZBH) recently priced an offering of Euro-dominated senior notes, looking to bring in over $1 billion.
The company said it will offer $530 million (EU €500 million) principal amount of 1.414% senior unsecured notes due 2022 and an additional $530 million (EU €500 million) principal amount of 2.425% senior unsecured notes due 2026.
The company said it expects the offering to close today, and that the notes will pay interest on an annual basis.
Proceeds from the round are slated to pay for outstanding senior notes in a cash tender offer commenced in November, and any remaining net proceeds are slated to repay other US denominated debt, according to a press release.
BNP Paribas, HSBC Bank and RBC Europe Limited acted as joint book runners for the offering.
Earlier this month, the U.S. Justice Dept. and Zimmer-Biomet said they were close to reaching a deal to settle bribery allegations against the orthopedic device giant.
The DoJ alleged that Biomet and its subsidiaries paid out more than $1.5 million in illegal kickbacks to employees of state-owned health services in Brazil and China. Biomet paid $22 million in March 2012 to settle the case with the Justice Dept. and the U.S. Securities & Exchange Commission, agreeing to a deferred prosecution agreement to guard against further misconduct (Zimmer and Biomet closed their $14 billion merger in June 2015).
But in July 2014, an SEC subpoena prompted Biomet to reveal other alleged improprieties at its operations in Brazil and Mexico, prompting an extension to the DPA and a new federal probe beyond the term of the agreement.
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