Financings In Brief

Zimmer: Orthopedics firm would repay $1.75 bil. in borrowings for its potential $3.2 bil. Centerpulse acquisition within three years, Zimmer says (1"The Gray Sheet" May 26, 2003, p. 3). The credit facility consists of a $400 mil. 364-day revolver, an $800 mil. three-year revolver and a $550 mil. five-year bank term loan, holding an average interest rate of 4%, excluding capital costs. Zimmer notes it received regulatory anti-trust approval for the merger July 23 from the U.S. and European Commission, putting the firm on par with rival bidder Smith & Nephew, which received clearance in May. Centerpulse shareholders will choose between tender offers from Zimmer and S&N Aug. 27, and expect to close a deal in September. Zimmer reported July 24 a 35% increase in earnings for Q2 to $89 mil. on sales of $411 mil., up 19%...