8-KMaterial AgreementsExhibits & Filings

DANAHER CORP /DE/ 8-K Report, Material Agreement (Jun 30, 2017)

Filed June 30, 2017For Securities:DHR

Summary

On June 30, 2017, DHR's European finance subsidiary, DH Europe Finance S.A., successfully issued €850 million in senior notes through an underwritten offering. This issuance comprises €250 million in floating rate senior notes due 2022 and €600 million in fixed-rate senior notes due 2027. These notes are fully and unconditionally guaranteed by the parent company, Danaher Corporation, making them unsecured and unsubordinated debt for both entities. The company has secured approval for listing both series of notes on the New York Stock Exchange. The issuance was made under an existing indenture, supplemented by a new agreement dated June 30, 2017. The terms allow Danaher International to redeem the 2027 Notes prior to maturity with a make-whole premium, and at par thereafter, while also including provisions for repurchase by Danaher International at 101% of principal in the event of a change of control triggering event.

Key Highlights

  • 1Danaher's European subsidiary issued €850 million in senior notes, split between €250 million floating rate notes (due 2022) and €600 million fixed rate notes (due 2027).
  • 2The issuance is fully and unconditionally guaranteed by the parent company, Danaher Corporation.
  • 3The notes are unsecured and unsubordinated, ranking equally with other existing senior unsecured debt of the issuer and guarantor.
  • 4Both series of notes have received listing approval from the New York Stock Exchange (NYSE).
  • 5Danaher International has the option to redeem the 2027 Notes at a 'make-whole' premium before March 2027, and at 100% of principal thereafter.
  • 6A change of control triggering event (defined as a change of control coupled with a rating event) allows noteholders to require repurchase at 101% of principal.
  • 7The financing was conducted under an existing indenture, supplemented by a new agreement dated June 30, 2017.

Frequently Asked Questions

The filing does not explicitly state the purpose of the debt issuance. However, such issuances are typically used for general corporate purposes, which may include funding acquisitions, capital expenditures, refinancing existing debt, or returning capital to shareholders.

Danaher International is issuing a total of €850 million in senior notes, consisting of €250 million in Floating Rate Senior Notes due 2022 and €600 million in 1.200% Senior Notes due 2027.

If a 'change of control triggering event' occurs (defined as a change of control plus a rating event), noteholders have the right to require DH Europe Finance S.A. to repurchase their notes at 101% of the principal amount, plus accrued interest. This provides a layer of protection for investors against significant adverse corporate events.

The Notes are unsecured and unsubordinated. The Guarantees from Danaher Corporation are also unsecured and unsubordinated. This means they rank equally in right of payment with other unsecured and unsubordinated indebtedness of both DH Europe Finance S.A. and Danaher Corporation.