Zimmer Biomet secures $2.75B in new revolving credit facilities

Zimmer Biomet Holdings, Inc. (NYSE: ZBH) entered into two new revolving credit agreements on June 26, 2026, totaling $2.75 billion in unsecured borrowing capacity, according to a company statement.

The first is a five-year revolving credit facility of $1.5 billion, maturing on June 26, 2031, with JPMorgan Chase Bank, N.A. serving as administrative agent. The agreement includes two optional one-year extensions at the company's discretion, subject to lender consent, and an uncommitted incremental feature allowing the facility to be increased by up to $750 million.

The second is a 364-day revolving credit facility of $1.25 billion, also administered by JPMorgan Chase Bank, N.A., maturing on June 25, 2027.

Both facilities carry floating interest rates based on either an adjusted Term SOFR or an alternate base rate, plus a margin tied to the company's senior unsecured long-term debt credit rating. Both agreements require the company to maintain a consolidated indebtedness to consolidated EBITDA ratio of no greater than 4.5 to 1.0, with a provision allowing the ratio to rise to 5.0 to 1.0 in connection with a qualified material acquisition.

Proceeds from both facilities are designated for general corporate purposes.

In connection with the new agreements, Zimmer Biomet terminated its prior five-year and 364-day revolving credit agreements, both dated June 27, 2025. Neither facility carried an outstanding principal balance at the time of termination. The company paid approximately $0.4 million in fees associated with the terminated five-year agreement using cash on hand.

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