Summary
Danaher Corporation (DHR) announced on March 26, 2018, that it entered into a new $1.0 billion 364-day revolving credit facility on March 23, 2018. This facility provides significant liquidity support and is intended for Danaher's commercial paper programs and general corporate purposes. Notably, the company also plans to use proceeds from its commercial paper to fund a portion of the acquisition of Integrated DNA Technologies, Inc. The credit facility has a variable interest rate structure and requires Danaher to maintain a specific Consolidated Leverage Ratio. While unsecured, it includes customary covenants and events of default. Investors should note the company's ability to convert outstanding loans into term loans at maturity, providing flexibility. This move underscores Danaher's proactive approach to managing its financing needs, particularly in light of ongoing strategic initiatives like the Integrated DNA Technologies acquisition.
Key Highlights
- 1Danaher established a new $1.0 billion 364-day revolving credit facility maturing on March 22, 2019.
- 2The facility provides liquidity for Danaher's U.S. and Euro commercial paper programs and general corporate uses.
- 3Proceeds from commercial paper issuances will help fund part of the acquisition of Integrated DNA Technologies, Inc.
- 4Interest rates are variable, based on Eurodollar or Base Rates plus specified margins.
- 5Danaher must maintain a Consolidated Leverage Ratio of 0.65 to 1.00 or less.
- 6Borrowings are prepayable without penalty.
- 7The credit facility is unsecured, with customary covenants and events of default, including change of control clauses.