Credit Suisse First Boston, J.P. Morgan and Bank of America are scheduled to launch retail syndication of Zimmer Holdings' $1.75 billion credit this Wednesday. The deal backs the orthopedic product company's approximately $3.22 billion acquisition bid for Centerpulse. The credit went out to managing agents three weeks ago, a banker familiar with the deal said, adding that there has been a positive response so far at this level. He did not cite commitment levels or any new lenders that have joined the facility.
The credit includes a $550 million, five-year term loan; an $800 million, three-year revolver and another $400 million, 364-day facility. The term loan is priced at LIBOR plus 11/8%, while the other two tranches are priced at LIBOR plus 7/8%. There is a 12.5 basis point facility fee on the 364-day tranche and a 15 basis point facility fee on the revolver.
In conjunction with the Centerpulse transaction, Zimmer is also acquiring InCentive Capital, a significant shareholder of Centerpulse. Last week, European jurisdictions approved Zimmer's acquisition of Centerpulse in relation to antitrust filings. Zurich-based Centerpulse is a medical technology group that serves the reconstructive joint, spinal and dental implant markets. A B of A official declined to comment, while CSFB and J.P. Morgan officials did not return calls. Sam Leno, senior v.p. and cfo of Zimmer, also did not return calls.