Summary
Danaher Corporation (DHR) announced on July 19, 2011, the execution of a new $2.5 billion unsecured, multiyear revolving credit facility, effective July 15, 2011. This new facility, which matures in July 2016, replaces the company's existing $1.5 billion revolving credit facility that was set to expire in April 2012. The company also reported a reduction in its previously announced $3.0 billion 364-day revolving credit facility to $1.5 billion, which was established in connection with the acquisition of Beckman Coulter, Inc. The new credit facility provides Danaher with significant financial flexibility and an extended maturity profile. It is intended to serve as credit support for the company's global commercial paper program and for general corporate purposes, including working capital needs. The terms of the new facility include variable interest rates tied to credit ratings, a facility fee, and a leverage ratio covenant of 0.65 to 1.00 or less.
Key Highlights
- 1Danaher entered into a new $2.5 billion unsecured, multiyear revolving credit facility maturing in July 2016.
- 2The new credit facility replaces a prior $1.5 billion facility that was scheduled to expire in April 2012.
- 3The company reduced its $3.0 billion 364-day revolving credit facility to $1.5 billion.
- 4The new credit facility will be used for working capital, general corporate purposes, and as credit support for its commercial paper program.
- 5Borrowing costs under the new facility are variable, based on credit ratings, and include a facility fee.
- 6The agreement includes a covenant requiring Danaher to maintain a consolidated leverage ratio of 0.65 to 1.00 or less.
- 7The existing $1.5 billion credit agreement was terminated upon the effectiveness of the new agreement, with no outstanding borrowings.