Summary
Danaher Corporation (DHR) announced on August 28, 2019, the establishment of two new unsecured revolving credit facilities, replacing an existing facility. The first is a five-year, $5.0 billion revolving credit facility maturing in August 2024, with an option for a one-year extension and an expansion option for an additional $2.5 billion. The second is a $5.0 billion 364-day revolving credit facility maturing in August 2020, with an option to convert outstanding loans into term loans. These new facilities enhance Danaher's liquidity and are intended to support its commercial paper programs and general corporate purposes. Notably, proceeds from the commercial paper programs are earmarked to fund a portion of the pending acquisition of GE Life Sciences' Biopharma Business. The credit facilities include covenants and require Danaher to maintain a specific consolidated leverage ratio.
Key Highlights
- 1Danaher has secured new unsecured revolving credit facilities totaling $10.0 billion ($5.0 billion 5-year and $5.0 billion 364-day).
- 2The 5-year facility provides a maturity of August 2024 with potential extension and expansion options.
- 3The 364-day facility offers short-term flexibility and an option for conversion to term loans.
- 4The new facilities replace an existing $4.0 billion credit facility, increasing available credit by $1.0 billion.
- 5Borrowings under these facilities are unsecured.
- 6Proceeds are intended for liquidity support of commercial paper programs and general corporate purposes, including funding part of the GE Biopharma Business acquisition.
- 7The facilities contain a leverage ratio covenant (0.65 to 1.00 or less) and other customary covenants and events of default.