Summary
Stryker Corporation (SYK) filed an 8-K on December 2, 2019, to announce the entry into a material definitive agreement for an underwritten public offering of debt securities. The company entered into an Underwriting Agreement on November 25, 2019, with several underwriters, including Barclays Bank PLC, BNP Paribas, Goldman Sachs & Co. LLC, and Morgan Stanley & Co. International plc. This offering is crucial for Stryker as it aims to raise approximately €2,376 million (or $2,621 million) in net proceeds. The primary use of these substantial funds is to finance the recently announced acquisition of Wright Medical Group N.V. and cover associated fees and expenses. Any remaining proceeds will be allocated to general corporate purposes. The offering is expected to close on December 3, 2019, and is separate from the closing of the Wright Medical acquisition, which will occur later.
Key Highlights
- 1Stryker Corporation entered into an Underwriting Agreement for a public offering of debt securities.
- 2The offering aims to raise approximately €2,376 million (or $2,621 million) in net proceeds.
- 3The primary use of proceeds is to fund the acquisition of Wright Medical Group N.V.
- 4The debt securities include three tranches: €850 million of 0.250% Notes due 2024, €800 million of 0.750% Notes due 2029, and €750 million of 1.000% Notes due 2031.
- 5The offering is expected to close on December 3, 2019.
- 6The closing of the debt offering is not contingent on the completion of the Wright Medical acquisition.