Analisis Financiero Zimmer

LOAN TO THE BUSINESS

Zimmer Holdings Inc (NYSE:ZMH), is a global leader in the design, manufacture and distribution of reconstructive implants, trauma products and orthopedics surgical products. Is one of the fastest growing and most profitable companies recording net sales $1.372b and net earnings $258m for FY02.

Zimmer intention to commence an offer to acquire Centerpulse, a medical device company, servicing joint care, spiral care and dental implant markets. Hold sales FYE02 $796m. Headquarters located in Zurich, operates globally. Transaction will be submitted for CHF $120 cash and 3.68 Zimmer shares per Centerpulse registered share, also is offering to acquire all of the outstanding shares of InCentive Capital in exchange for shares of Zimmer common stock and cash. Zimmer launched its formal offer on June 19, 2003.

The stock portion of the offer will be financed by the issuance of $44.9m shares. The cash portion will be financed by a portion of senior unsecured credit facilities in an aggregate amount of $1750b, with an applicable interest rate plus 2% per annum.

The proceeds of loans under the RCF will be used for Zimmer’s working capital and other corporate purposes. The expected drawing of the credit facilities at closing is $1.496m assuming closing date of 9/30/03

For LTM ended 3/31/03 the combined company is expected to record revenues of $2.3b and EBITDA $711m.

Senior credit Facilities will have the following covenants.

• Debt/EBIDTA less than 3.0 to 1.0

• EBIDTA to interest Expense grater the 3.5x to 1.0x

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The loan agreement specify the following important considerations

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