| ITEM 1.01 |
ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT |
Euro Notes Offering
On September 11, 2024, Stryker Corporation (the “Company”) completed a public offering (the “Euro Offering”) of €800,000,000 aggregate principal amount of its 3.375% Notes due 2032 (the “2032 Notes”) and €600,000,000 aggregate principal amount of its 3.625% Notes due 2036 (the “2036 Notes” and, together with the 2032 Notes, the “Euro Notes”).
The Euro Notes were sold pursuant to an Underwriting Agreement, dated September 4, 2024 (the “Euro Underwriting Agreement”), between the Company and Citigroup Global Markets Limited, Goldman Sachs & Co. LLC, Barclays Bank PLC, BNP Paribas and Merrill Lynch International, as representatives of the underwriters. The Euro Offering was made pursuant to the Company’s Automatic Shelf Registration Statement on Form S-3 (File No. 333-275853) and the Prospectus included therein, filed with the Securities and Exchange Commission on December 1, 2023, and supplemented by the Prospectus Supplement dated September 4, 2024 relating to the Euro Notes.
The Euro Notes were issued under an Indenture, dated January 15, 2010 (the “Base Indenture”), between the Company and U.S. Bank Trust Company, National Association, as successor in interest to U.S. Bank, National Association, as trustee (the “Trustee”), as supplemented by the Twenty-Eighth Supplemental Indenture, dated as of September 11, 2024, and the Twenty-Ninth Supplemental Indenture, dated as of September 11, 2024, each between the Company and the Trustee (collectively, the “Euro Supplemental Indentures” and, the Base Indenture as so supplemented, the “Euro Indenture”).
The 2032 Notes will bear interest at a rate of 3.375% per year and the 2036 Notes will bear interest at a rate of 3.625% per year. Interest on the Euro Notes is payable on September 11 of each year, commencing on September 11, 2025. The 2032 Notes will mature on September 11, 2032 and the 2036 Notes will mature on September 11, 2036.
The Company may redeem the Euro Notes at its option, in whole, but not in part, for cash, at any time prior to their maturity at a price equal to 100% of the outstanding principal amount of the Euro Notes, plus accrued and unpaid interest to, but not including, the redemption date, if certain tax events occur that would obligate the Company to pay additional amounts as described in the Indenture. In addition, prior to June 11, 2032, the Company may redeem the 2032 Notes, and prior to June 11, 2036, the Company may redeem the 2036 Notes, at the Company’s option for cash, any time in whole or from time to time in part, at a redemption price that includes accrued and unpaid interest and the applicable make-whole premium, as specified in the Indenture. However, no make-whole premium will be paid for redemption of the 2032 Notes on or after June 11, 2032 or of the 2036 Notes on or after June 11, 2036.
The Company expects to receive net proceeds of approximately €1,383 million (or $1,529 million based on an exchange rate of €1 to $1.1060 on August 30, 2024, as published by the U.S. Federal Reserve Board), after deducting the underwriting discount and the Company’s estimated expenses related to the Euro Offering.
The Company may issue additional debt from time to time pursuant to the Euro Indenture. The Euro Indenture contains covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale and leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all of the Company’s assets. Subject to certain limitations, in the event of the occurrence of both (1) a change of control of the Company and (2) a downgrade of the Euro Notes below investment grade rating by both Moody’s Investors’ Services, Inc. and Standard & Poor’s Ratings Services within a specified time period, the Company will be required to make an offer to purchase the Euro Notes at a price equal to 101% of the principal amount of the Euro Notes, plus accrued and unpaid interest to, but not including, the date of repurchase.
The foregoing description of the Euro Underwriting Agreement, the Base Indenture and the Euro Supplemental Indentures does not purport to be complete and is qualified in its entirety by reference to the full text of such documents, which are filed as Exhibits 1.1, 4.1, 4.2 and 4.3 hereto, respectively, and incorporated herein by reference.
