Summary
Danaher Corporation (DHR) has entered into a new $5.0 billion unsecured, multiyear revolving credit facility, replacing its previous agreement. This new facility, set to expire on August 11, 2028, includes a one-year extension option and an expansion option allowing for an additional $2.5 billion in borrowings, subject to certain conditions. The credit facility is intended to provide liquidity support for Danaher's commercial paper programs and for general corporate purposes, indicating a focus on maintaining operational flexibility and financial stability. The terms of the credit facility include variable interest rates tied to credit ratings and benchmark rates like Term SOFR. A key financial covenant requires Danaher to maintain a Consolidated Leverage Ratio of 0.65 to 1.00 or less, demonstrating a commitment to prudent financial management and a healthy balance sheet. While unsecured, the facility includes customary covenants and events of default, with potential acceleration of debt upon default. The establishment of this facility provides Danaher with robust financial resources to manage its ongoing operations and potential future strategic initiatives.
Key Highlights
- 1Danaher has established a new $5.0 billion unsecured, multiyear revolving credit facility, effective August 11, 2023.
- 2The new credit facility has a maturity date of August 11, 2028, with a one-year extension option.
- 3An expansion option allows Danaher to increase the facility by up to an aggregate of $2.5 billion.
- 4Borrowings will bear variable interest rates, with margins dependent on Danaher's long-term debt credit rating and benchmarks like Term SOFR.
- 5The facility requires Danaher to maintain a Consolidated Leverage Ratio of 0.65 to 1.00 or less.
- 6The credit facility is intended for liquidity support of commercial paper programs and general corporate purposes.
- 7The obligations under the credit facility are unsecured.