Summary
Danaher Corporation (DHR) announced a significant debt offering through its subsidiary, DH Europe Finance II S.à r.l. (Danaher International II), to raise approximately $3.97 billion in net proceeds. This capital will be primarily used to fund a portion of the cash consideration and associated costs for the acquisition of GE Life Sciences' Biopharma Business. The offering consists of various tranches of senior notes with maturities ranging from 2022 to 2049 and interest rates between 2.050% and 3.400%, all fully guaranteed by Danaher Corporation. This substantial debt issuance underscores Danaher's strategic commitment to the GE Biopharma acquisition, which is expected to be a key driver of future growth. Investors should note the company's proactive approach in securing financing for this significant transaction. Pending the closing of the acquisition, Danaher plans to prudently manage the raised capital through short-term investments in low-risk, interest-bearing securities.
Key Highlights
- 1Danaher International II issued $3.97 billion aggregate principal amount of senior notes across multiple maturities (2022, 2024, 2029, 2039, 2049).
- 2The net proceeds of approximately $3.97 billion are earmarked for the acquisition of GE Life Sciences' Biopharma Business.
- 3The senior notes are fully and unconditionally guaranteed by Danaher Corporation.
- 4Interest rates on the notes range from 2.050% to 3.400%.
- 5The offering was conducted through an underwritten agreement with several financial institutions, including BofA Securities, Mizuho Securities, MUFG Securities, U.S. Bancorp Investments, and Wells Fargo Securities.
- 6Pending the acquisition's completion, proceeds will be invested in short-term bank deposits or investment-grade securities.
- 7The offering was expected to close on November 7, 2019.