8-KMaterial AgreementsOther EventsExhibits & Filings

DANAHER CORP /DE/ 8-K Report, Material Agreement (Oct 6, 2020)

Filed October 6, 2020For Securities:DHR

Summary

Danaher Corporation (DHR) announced on October 6, 2020, the successful issuance of $1 billion in 2.600% Senior Notes due 2050. The company received net proceeds of approximately $980.1 million from this offering, which will be utilized for general corporate purposes. Key intended uses include the redemption of its €800 million 1.700% Senior Notes due 2022, refinancing of other outstanding debt, working capital, capital expenditures, and other obligations. This strategic debt issuance and redemption signals active management of the company's capital structure and a focus on optimizing its debt profile. In conjunction with the new note issuance, Danaher also formally called for the redemption of its entire €800 million outstanding 1.700% Senior Notes due 2022, with the redemption date set for November 5, 2020. The redemption price for these notes will be the greater of par or a calculated present value amount, plus accrued interest. This move suggests Danaher is leveraging favorable market conditions or its balance sheet strength to proactively address its existing debt obligations.

Key Highlights

  • 1Danaher issued $1 billion of 2.600% Senior Notes due 2050 on October 6, 2020.
  • 2Net proceeds of approximately $980.1 million were generated from the note offering.
  • 3Proceeds are earmarked for general corporate purposes, including debt redemption and refinancing.
  • 4Danaher called for the redemption of its entire €800 million outstanding 1.700% Senior Notes due 2022.
  • 5The redemption date for the 2022 Notes is November 5, 2020.
  • 6The new notes are unsecured and rank equally with other senior unsecured indebtedness.
  • 7The offering was conducted through an underwritten public offering under an existing registration statement.

Frequently Asked Questions

The primary purpose of the new $1 billion note issuance is for general corporate purposes, which includes funding the redemption of Danaher's €800 million 1.700% Senior Notes due 2022, refinancing other outstanding indebtedness, supporting working capital needs, capital expenditures, and satisfying other obligations.

Danaher has called for the redemption of all €800 million in aggregate principal amount of its outstanding 1.700% Senior Notes due 2022. The redemption is scheduled for November 5, 2020, and the redemption price will be determined based on the greater of par value or a present value calculation, plus accrued interest.

The new notes have a principal amount of $1 billion, a coupon rate of 2.600% per annum, and mature on October 1, 2050. Interest is paid semi-annually. The notes are unsecured and rank equally with Danaher's other unsecured and unsubordinated indebtedness. Danaher has the option to redeem the notes at par plus accrued interest on or after April 1, 2050, and may redeem them earlier at a 'make-whole' premium.

The company raised approximately $980.1 million in net proceeds from the new debt issuance. By redeeming the higher-interest 2022 notes (1.700% EUR) with proceeds from the new, longer-term debt, Danaher appears to be optimizing its debt structure, potentially extending its debt maturity profile and managing interest costs. The exact financial impact will depend on the final redemption price of the 2022 notes and the prevailing interest rate environment.