Stryker Corp., the second-largest seller of orthopedic devices, is offering $1 billion of bonds in its first sale in about eighteen months.
The company may offer five- and 30-year debentures as soon as Wednesday, according to a person familiar with the transaction. The bonds may be 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, according to data compiled by Bloomberg. 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 will be used for working capital, acquisitions and stock repurchases according to a company filing Wednesday.
Bank of America Corp., Barclays Plc and Goldman Sachs Group Inc. are managing the offering for the Kalamazoo-based company, said the person, who asked not to be identified because terms aren't set. Johnson & Johnson is the largest seller of orthopedic devices, according to Bloomberg Industries.