Stryker Sells $1 Billion of Bonds With First Offering Since 2011

Stryker Corp. (SYK), the second-largest seller of orthopedic devices, sold $1 billion of bonds in its first issue in about 18 months.

The company’s $600 million of 1.3 percent, five-year notes yield 60 basis points more than similar-maturity Treasuries and its $400 million of 4.1 percent, 30-year debt pays a relative yield of 100 basis points, according to data compiled by Bloomberg. The bonds are rated A3 by Moody’s Investors Service.

The company last sold debt in September 2011, issuing $750 million of 2 percent, five-year debentures to yield 115 basis points more than similar-maturity Treasuries, Bloomberg data show. The bonds traded at 104.1 cents on the dollar to yield 0.83 percent on March 7, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Proceeds may be used for working capital, acquisitions and stock repurchases according to a company filing today.

Bank of America Corp., Barclays Plc and Goldman Sachs Group Inc. managed the offering for the Kalamazoo, Michigan-based company, Bloomberg data show. Johnson & Johnson is the largest seller of orthopedic devices, according to Bloomberg Industries.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story Alan Goldstein at agoldstein5@bloomberg.net

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