Zimmer Biomet Holdings Inc.'s Senior Unsecured Notes Rated 'BBB'

BOSTON (S&P Global Ratings) Feb. 11, 2025--S&P Global Ratings today assigned its ?BBB? issue-level rating to U.S.-based medical device manufacturer Zimmer Biomet Holdings Inc. ?s proposed senior unsecured notes (amounts and maturities to be determined). The company will use the net proceeds, along with cash on hand, to fund its acquisition of Paragon 28 announced on Jan. 28, 2025, and for general corporate purposes. This may involve repaying debt (including a portion of its $863 million, 3.55% senior notes due in 2025), funding share repurchases, or financing capital commitments or acquisitions. Our ?BBB? issuer credit rating and stable outlook on Zimmer Biomet are unchanged. While we expect the additional debt will increase leverage to about 3x in 2025 from about

...February 11, 2025 BOSTON (S&P Global Ratings) Feb. 11, 2025--S&P Global Ratings today assigned its `###' issue- level rating to U.S.-based medical device manufacturer Zimmer Biomet Holdings Inc.'s proposed senior unsecured notes (amounts and maturities to be determined). The company will use the net proceeds, along with cash on hand, to fund its acquisition of Paragon 28 announced on Jan. 28, 2025, and for general corporate purposes. This may involve repaying debt (including a portion of its $863 million, 3.55% senior notes due in 2025), funding share repurchases, or financing capital commitments or acquisitions. Our `###' issuer credit rating and stable outlook on Zimmer Biomet are unchanged. While we expect the additional debt will increase leverage to about 3x in 2025 from about 2.5x in 2024, given the negligible initial EBITDA contribution from Paragon and upfront integration costs, this is consistent with our expectation for Zimmer to maintain a solid cushion relative to our downside...

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