Summary
Danaher Corporation (DHR) filed an 8-K on September 11, 2015, to report on the issuance of senior notes. The company entered into an underwriting agreement on September 10, 2015, for the sale of $2 billion in aggregate principal amount of senior notes across four tranches with varying maturities and interest rates. The primary purpose of this debt issuance is to raise approximately $1.98 billion in net proceeds. Danaher intends to use these funds to repay a portion of the commercial paper previously issued to finance a part of the acquisition of Pall Corporation. This move signals Danaher's proactive approach to managing its capital structure post-acquisition and ensuring financial stability.
Key Highlights
- 1Danaher Corporation issued $2 billion in senior notes through an underwritten offering.
- 2The notes are structured into four series: 1.650% Senior Notes due 2018, 2.400% Senior Notes due 2020, 3.350% Senior Notes due 2025, and 4.375% Senior Notes due 2045.
- 3The company expects to receive net proceeds of approximately $1.98 billion from the offering.
- 4Proceeds will be used to repay commercial paper used to finance the Pall Corporation acquisition.
- 5The offering is expected to close on September 15, 2015.
- 6The underwriting agreement was entered into with Citigroup Global Markets Inc. and Barclays Capital Inc.
Frequently Asked Questions
Danaher is issuing these senior notes to raise capital to repay a portion of the commercial paper that was used to finance part of the recent acquisition of Pall Corporation.
Danaher issued $2 billion in aggregate principal amount of senior notes and expects to receive approximately $1.98 billion in net proceeds after accounting for underwriting discounts, commissions, and estimated expenses.
The notes are issued in four tranches: $500 million of 1.650% Senior Notes due 2018, $500 million of 2.400% Senior Notes due 2020, $500 million of 3.350% Senior Notes due 2025, and $500 million of 4.375% Senior Notes due 2045.
The offering of the senior notes is expected to close on September 15, 2015, subject to customary closing conditions.