Summary
Danaher Corporation (DHR) announced the termination of its $3.0 billion 364-day unsecured revolving credit facility. This facility, originally established in June 2011 in connection with the acquisition of Beckman Coulter, Inc., had its commitments progressively reduced throughout the latter half of 2011. The company has now elected to reduce the commitments to zero, with the facility officially terminating on December 29, 2011. Importantly, there were no outstanding borrowings under this credit facility at the time of its termination, and importantly, no early termination penalties will be incurred by Danaher. This action suggests a strong liquidity position and a proactive approach by management in managing its debt facilities. Investors should view this as a positive sign of financial health and efficient capital structure management.
Key Highlights
- 1Danaher Corporation (DHR) is terminating its $3.0 billion 364-day unsecured revolving credit facility.
- 2The facility was put in place on June 17, 2011, to support the acquisition of Beckman Coulter, Inc.
- 3Commitments under the facility were reduced multiple times throughout 2011, from $3.0 billion down to $1.0 billion.
- 4The company has now provided notice to reduce commitments to zero.
- 5The facility will officially terminate on December 29, 2011.
- 6There were no outstanding borrowings under the facility at the time of termination.
- 7No early termination penalties will be incurred by Danaher.