• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • Subscribe

MassDevice

The Medical Device Business Journal — Medical Device News & Articles | MassDevice

  • Latest News
  • Technologies
    • Artificial Intelligence (AI)
    • Cardiovascular
    • Orthopedics
    • Neurological
    • Diabetes
    • Surgical Robotics
  • Business & Finance
    • Wall Street Beat
    • Earnings Reports
    • Funding Roundup
    • Mergers & Acquisitions
    • Initial Public Offering (IPO)
    • Legal News
    • Personnel Moves
    • Medtech 100 Stock Index
  • Regulatory & Compliance
    • Food & Drug Administration (FDA)
    • Recalls
    • 510(k)
    • Pre-Market Approval (PMA)
    • MDSAP
    • Clinical Trials
  • Special Content
    • Special Reports
    • In-Depth Coverage
    • DeviceTalks
  • Podcasts
    • MassDevice Fast Five
    • DeviceTalks Weekly
    • OEM Talks
      • AbbottTalks
      • Boston ScientificTalks
      • DeviceTalks AI
      • IntuitiveTalks
      • MedtechWOMEN Talks
      • MedtronicTalks
      • Neuro Innovation Talks
      • Ortho Innovation Talks
      • Structural Heart Talks
      • StrykerTalks
  • Resources
    • About MassDevice
    • DeviceTalks
    • Newsletter Signup
    • Leadership in Medtech
    • Manufacturers & Suppliers Search
    • MedTech100 Index
    • Videos
    • Webinars
    • Whitepapers
    • Voices
Home » UPDATE: Stryker Corp. prices $1 billion debt offering

UPDATE: Stryker Corp. prices $1 billion debt offering

January 12, 2010 By MassDevice staff

Medical device giant Stryker Corp. (NYSE: SYK) on Tuesday hit the credit markets in a big way, pricing $1 billion in senior unsecured notes.

The notes were floated in two tranches of $500 million earch — five-year notes with a 3 percent yield, or 55 basis points above the yield for five-year U.S. Treasury notes, and 10-year notes yielding 4.375 percent, or 75 basis points over the comparable Treasury rate.

Officials with Kalmazoo, Mich.-based Stryker did not specify how they intend to spend the new money, other than “general corporate purposes, including acquisitions, stock repurchases and other business opportunities,” according to a news release.

The company earlier Tuesday filed a shelf registration of securities under “Well-known Seasoned Issuer” rules, which do not require a dollar amount of the securities to be registered.

Ratings issuers gave Stryker high marks prior to the pricing, with Standard & Poor’s assigning an “A-plus,” its third-highest rating, indicating a “Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions.” Moody’s Investors Service reaffirmed the “A3” rating Stryker has carried since a May, 2005, upgrade.

Both Moody’s and S&P cited Stryker’s strong market position in orthepedics and surgical products in their assessments. The firms also said Stryker has maintained relatively steady cash flow despite recent dips in hospital spending, although a Moody’s analyst also noted the company is not completely risk-free due to ongoing regulatory actions such as last month’s Class I recall of Stryker’s computer-aided surgery platform.

Until now, Stryker had generally stuck to a “pay-as-you-go” policy, using its ample cash reserves or issuing stock to finance acquisitions and other corporate activities. The company had $960 million in cash on the books on Sept. 30, 2009, along with nearly another $2 billion in marketable securities, while carrying only $18.2 million in debt.

“This transaction signals a shift in Stryker’s financial policies as permanent debt is added to its balance sheet,” said Diana Lee, a senior credit officer at Moody’s.

Underwriters for the deals were Bank of America Merrill Lynch, Barclays Capital and Wells Fargo Securities.

Filed Under: Business/Financial News, News Well, Orthopedics Tagged With: Stryker

More recent news

  • Breaking: Sequel to launch twiist automated insulin delivery system next month
  • Dexcom shares U.S. report on CGM benefits for type 2 diabetes
  • Data backs Medtronic MiniMed 780G for type 2, children as company seeks expanded indications
  • Endogenex data supports type 2 diabetes procedure
  • Ambu wins FDA clearance for first single-use cysto-nephroscope

Primary Sidebar

“md
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest med device regulatory, business and technology news.

DeviceTalks Weekly

See More >

MEDTECH 100 Stock INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
MDO ad

Footer

MASSDEVICE MEDICAL NETWORK

DeviceTalks
Drug Delivery Business News
Medical Design & Outsourcing
Medical Tubing + Extrusion
Drug Discovery & Development
Pharmaceutical Processing World
MedTech 100 Index
R&D World
Medical Design Sourcing

DeviceTalks Webinars, Podcasts, & Discussions

Attend our Monthly Webinars
Listen to our Weekly Podcasts
Join our DeviceTalks Tuesdays Discussion

MASSDEVICE

Subscribe to MassDevice E-Newsletter
Advertise with us
About
Contact us

Copyright © 2025 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Privacy Policy