Summary
Danaher Corporation (DHR) has announced a significant financing transaction through its wholly-owned subsidiary, Veralto Corporation. Veralto has issued a substantial amount of senior notes in both U.S. dollar and Euro denominations, totaling $2.1 billion and €500 million respectively. These notes are intended to fund the upcoming separation of Veralto from Danaher, a spin-off event anticipated by investors. Danaher has provided full and unconditional guarantees for these notes, which will be released upon the completion of the Veralto separation.
Key Highlights
- 1Veralto Corporation, a Danaher subsidiary, has issued $2.1 billion in senior notes across three tranches (2026, 2028, 2033) with coupon rates ranging from 5.350% to 5.500%.
- 2Veralto has also issued €500 million in senior notes due 2031 with a coupon rate of 4.150%.
- 3The issuance of these notes is directly tied to the planned separation (spin-off) of Veralto from Danaher.
- 4Danaher Corporation has fully and unconditionally guaranteed all of Veralto's issued notes.
- 5These guarantees will automatically terminate upon the successful completion of the Veralto separation.
- 6A special mandatory redemption clause is in place: if the separation is not completed by March 29, 2024, Veralto will redeem the notes at 101% of their principal amount plus accrued interest.