Summary
Danaher Corporation (DHR) announced on September 18, 2019, through its subsidiary DH Europe Finance II S.à r.l., the issuance of €6.25 billion in aggregate principal amount of senior notes across various maturities ranging from 2026 to 2049. These notes carry fixed interest rates ranging from 0.200% to 1.800% and are fully and unconditionally guaranteed by Danaher Corporation. The primary purpose of this significant debt offering is to fund a portion of the cash consideration and associated costs for the acquisition of the Biopharma Business of GE Life Sciences (GE Biopharma Acquisition). This strategic move indicates Danaher's commitment to expanding its footprint in the biopharma sector. The company has taken steps to ensure liquidity by potentially investing net proceeds in short-term, investment-grade securities pending the acquisition's closure. The notes are unsecured and unsubordinated, ranking equally with other senior unsecured indebtedness of the issuer and guarantor. Danaher has also secured NYSE listing approval for these notes, signaling a move towards greater accessibility for investors.
Key Highlights
- 1Danaher issued €6.25 billion in senior notes with maturities ranging from 2026 to 2049.
- 2The notes feature attractive fixed interest rates, from 0.200% to 1.800%.
- 3Proceeds are earmarked to finance the acquisition of GE Life Sciences' Biopharma Business.
- 4Danaher Corporation provides a full and unconditional guarantee for the notes.
- 5The notes are unsecured and unsubordinated, ranking pari passu with other senior unsecured debt.
- 6NYSE listing has been approved for all series of notes.
- 7A special mandatory redemption will occur if the GE Biopharma Acquisition is not completed by August 25, 2020, at 101% of the principal amount.