Stryker announces $2.3b offering to finance Wright Medical purchase

Stryker (NYSE:SYK) announced that it entered into an underwriting agreement in connection with a $2.3 billion offering set to finance its purchase of Wright Medical (NSDQ:WMGI).
The underwriting agreement is with BofA Securities, Citigroup Global Markets and Wells Fargo Securities. The offering, which Stryker expects to be completed on June 4, will result in the company issuing $640 million in 1.15% notes due 2025, $1 billion in 1.95% notes due 2030 and $650 million in 2.9% notes due 2050, according to a news release.
Stryker expects to collect nearly $2.3 billion from the offering. Combined with the proceeds from the company’s $2.6 billion (€2.4 billion) notes offering completed in December 2019, the funds are earmarked for consummating the acquisition of Wright Medical and for related fees and expenses. Any remainder is set to be used for general corporate purposes.
The company announced its acquisition of Wright Medical in November 2019. Since then, the FTC increased its scrutiny of the proposed merger in January, a Wright Medical shareholder filed a proposed class-action lawsuit to block the acquisition later that month and the U.K. began a probe into the merger just last week.
Original Article: (https://www.massdevice.com/stryker-announces-2-3b-offering-to-finance-wright-medical-purchase/)