Summary
Danaher Corporation (DHR) has entered into a new $5.0 billion 364-day revolving credit facility, maturing on April 15, 2027. This facility, with Bank of America, N.A. as Administrative Agent and a syndicate of lenders, is designed to provide liquidity support for Danaher's U.S. dollar-denominated commercial paper program and for general corporate purposes. The agreement offers flexibility, including the option to convert outstanding loans into term loans one year after the scheduled termination date, subject to certain conditions and fees. This strategic move bolsters Danaher's financial flexibility and operational capacity.
Key Highlights
- 1Danaher entered a new $5.0 billion 364-day revolving credit facility.
- 2The credit facility matures on April 15, 2027.
- 3Borrowings will bear interest at variable rates: Term SOFR Loans plus a margin of 58.5 to 108.5 basis points, and Base Rate Loans plus a margin of 0 to 8.5 basis points, both dependent on credit rating.
- 4A facility fee of 4.0 basis points per annum on aggregate commitments is payable.
- 5The facility requires Danaher to maintain a Consolidated Leverage Ratio of 0.65 to 1.00 or less.
- 6Loans are prepayable at Danaher's option without premium or penalty.
- 7The credit facility is intended for liquidity support of the U.S. dollar-denominated commercial paper program and general corporate purposes.
- 8Danaher's obligations under the facility are unsecured.
Frequently Asked Questions
The new $5.0 billion 364-day revolving credit facility is intended to provide liquidity support for Danaher's U.S. dollar-denominated commercial paper program and for general corporate purposes. This enhances Danaher's financial flexibility.
Borrowings under the facility will bear interest at variable rates. Term SOFR Loans will accrue interest at Term SOFR plus a margin between 58.5 and 108.5 basis points, dependent on credit rating. Base Rate Loans will accrue interest at the highest of defined rates plus a margin between 0 and 8.5 basis points, also dependent on credit rating. Additionally, a facility fee of 4.0 basis points per annum on aggregate commitments is payable.
Yes, the credit facility requires Danaher to maintain a Consolidated Leverage Ratio of 0.65 to 1.00 or less. The agreement also contains customary covenants restricting certain actions like incurring liens or disposing of assets, subject to exceptions.
The credit facility expires on April 15, 2027. Danaher has the option to convert any outstanding loans into term loans that would be due and payable one year later (April 15, 2028), subject to paying a fee of 0.50% of the outstanding principal and meeting certain conditions.