Stryker (NYSE:SYK) said yesterday it priced a $750 million debt offering of senior unsecured notes.
The offering will be jointly book-run by Barclays Capital, Citigroup Global Markets and Goldman, Sachs & Co, Kalamazoo, Mich.-based Stryker said.
The notes will bear interest at 3.375% per year and mature on November 1, 2025. Stryker expects the notes to settle on Friday, according to a press release.
Proceeds from the offering will be used to repay $200 million in existing debt at its maturity as well as for working capital and general corporate purposes including acquisitions, stock repurchases and other business opportunities.
Last week, Stryker beat expectations as its 3rd-quarter earnings soared nearly 430% and raised the low end of its outlook for the rest of the year.
Stryker posted profits of $301 million, or 79¢ per share, on sales of $2.42 billion for the 3 months ended Sept. 30. That amounts to bottom-line growth of 428.1% on sales growth of 1.3% compared with Q3 2014.
Adjusted to exclude 1-time items, profits were up 8.4% to $476 million, or $11.25 per share – 2¢ ahead of expectations on Wall Street, where analysts were looking for sales of $2.44 billion.