Summary
Danaher Corporation (DHR) has entered into a new $2.5 billion 364-day revolving credit facility, effective June 5, 2020. This new facility replaces a prior $5.0 billion credit facility that had no outstanding balances at the time of replacement. The primary purpose of this new facility is to provide liquidity support for Danaher's U.S. and Euro commercial paper programs and for general corporate purposes. The credit facility features variable interest rates based on either the Eurodollar Rate or Base Rate, with margins dependent on Danaher's credit rating. It also includes a facility fee on the aggregate commitments. Key covenants require Danaher to maintain a Consolidated Leverage Ratio of 0.65 to 1.00 or less, and include customary restrictions on liens, asset disposals, mergers, and the use of proceeds. The obligations are unsecured, but Danaher has guaranteed its subsidiaries' obligations.
Key Highlights
- 1Entered into a new $2.5 billion 364-day revolving credit facility on June 5, 2020.
- 2The new facility replaces a previously existing $5.0 billion 364-day revolving credit facility.
- 3No amounts were outstanding under the replaced facility.
- 4The facility has a Scheduled Termination Date of June 5, 2021, with an option to convert outstanding loans into one-year term loans.
- 5Interest rates are variable and depend on Danaher's credit rating, with margins applied to Eurodollar or Base Rate loans.
- 6Requires maintaining a Consolidated Leverage Ratio of 0.65 to 1.00 or less.
- 7Intended use for liquidity support of commercial paper programs and general corporate purposes.