ZBH · 8-K · 20260805PR335108

Interest Rate and Refinancing Exposure

ZIMMER BIOMET HOLDINGS, INC. · 2026-08-05 · Importance 19 · Surprise 6 · In source text

Zimmer Biomet maintains a $1.5 billion unsecured five-year revolving facility maturing June 27, 2030, with two one-year extensions subject to lender consent and an uncommitted feature allowing up to $500.0 million of additional capacity. It also has a $1.0 billion 364-day revolving facility maturing June 26, 2026; both facilities bear floating rates based on Term SOFR or an alternate base rate plus rating-based margins. The facilities require consolidated indebtedness to consolidated EBITDA of no greater than 4.5 to 1.0, temporarily increasing to 5.0 to 1.0 for qualifying material acquisitions, and had no outstanding borrowings at December 31, 2025. The company uses fixed-to-variable swaps on $1.0 billion of fixed-rate debt and reported $112.4 million of cumulative fair-value hedge adjustments against long-term debt.

Key facts

• The 2025 Five-Year Credit Agreement requires maintaining a consolidated indebtedness to consolidated EBITDA ratio of no greater than 4.5 to 1.0 (subject to increase to 5.0 to 1.0 for a qualified material acquisition). source
• Interest expense, net in 2025: $292.8 million. source
• Weighted average interest rate for borrowings was 3.8% at December 31, 2025 and 3.7% at December 31, 2024. source
• Weighted-average discount rate for leases as of December 31, 2025: 3.6% (2024: 3.5%). source
• Interest expense, net increased in 2025 primarily due to higher average debt balances outstanding related to the Paragon 28 acquisition and new borrowings in late 2024 that replaced debt with lower interest rates. source

Impact estimates