Summary
Danaher Corporation's 8-K filing on June 9, 2016, announced that its subsidiary, Fortive Corporation, will sell an additional $200 million in aggregate principal amount of 4.300% senior notes due in 2046. This supplements a previous issuance of $350 million, bringing the total to $550 million in these notes. Danaher will guarantee these notes until the planned separation of Fortive from the company. The proceeds from this additional note issuance are intended to fund payments to Danaher Corporation as consideration for asset contributions related to the Fortive separation, as well as cover related fees, expenses, and general corporate purposes. The notes are being offered in a private placement to qualified institutional buyers and non-U.S. persons, and will mature in 2046 with semi-annual interest payments.
Key Highlights
- 1Fortive Corporation, a Danaher subsidiary, will issue an additional $200 million in 4.300% senior notes due 2046.
- 2The total aggregate principal amount of these senior notes will reach $550 million ($350 million previously announced + $200 million additional).
- 3Danaher Corporation will provide guarantees for these notes until Fortive's planned separation from Danaher.
- 4Proceeds from the additional notes will be used to fund payments to Danaher Corporation for asset contributions related to the separation.
- 5The offering is structured as a private placement to qualified institutional buyers and non-U.S. persons.
- 6The notes will pay interest semi-annually and are expected to be issued on June 20, 2016, subject to closing conditions.
- 7Fortive expects to enter into a registration rights agreement for the notes.