Summary
Danaher Corporation (DHR) filed an 8-K report on June 24, 2011, disclosing the issuance of $1.1 billion in short-term promissory notes (New CP Notes) under its U.S. commercial paper program. These notes, with maturities ranging from June 28, 2011, to August 24, 2011, were issued to partially finance the anticipated acquisition of Beckman Coulter, Inc. The weighted average yield on these notes was a remarkably low 0.17%, reflecting favorable market conditions and Danaher's creditworthiness. This financing strategy highlights Danaher's proactive approach to funding significant strategic initiatives. The company's ability to secure such a large amount of short-term debt at a low interest rate underscores its strong financial position and access to capital markets. Investors should note that while this financing is for the acquisition, the success of the deal and its integration will be critical for future shareholder value.
Key Highlights
- 1Danaher Corporation issued $1.1 billion in short-term promissory notes (New CP Notes) under its U.S. commercial paper program.
- 2The issuance occurred between June 20 and June 23, 2011.
- 3The primary purpose of the notes is to finance a portion of the anticipated acquisition of Beckman Coulter, Inc.
- 4Maturities of the New CP Notes range from June 28, 2011, to August 24, 2011.
- 5The weighted average yield on these notes was a very low 0.17%, including issuance costs.
- 6The notes rank equally with Danaher's other unsecured and unsubordinated indebtedness.
- 7The company's revolving credit facilities provide credit support for the commercial paper program.