Summary
Thermo Fisher Scientific Inc. (TMO) announced on July 7, 2005, the entry into a material definitive agreement, specifically a credit agreement for a five-year senior unsecured European revolving credit facility totaling 175 million Euros. This facility provides the company with significant financial flexibility, with Thermo Luxembourg Holding S.a.r.l. and Thermo Finance Company B.V. serving as borrowers, and Thermo Fisher Scientific Inc. as guarantor. The agreement includes customary covenants and events of default, such as payment defaults, covenant breaches, and change of control provisions. It also incorporates affirmative, negative, and financial covenants related to subsidiaries' indebtedness, liens, and investment policies. The company has already drawn 150 million Euros under this facility, with a portion used to repay outstanding amounts under its Money Market Loan Program, indicating immediate utilization of these new funds to optimize its financing structure.
Key Highlights
- 1Thermo Fisher Scientific Inc. secured a new 175 million Euro, five-year senior unsecured European revolving credit facility.
- 2The credit facility aims to enhance the company's financial flexibility.
- 3Thermo Luxembourg Holding S.a.r.l. and Thermo Finance Company B.V. are the designated borrowers under the agreement.
- 4Thermo Fisher Scientific Inc. is providing an unconditional guarantee for the obligations under the credit facility.
- 5The agreement contains standard financial and non-financial covenants typical for such credit arrangements.
- 6The company has already drawn 150 million Euros from the facility, partly to repay existing short-term debt.
- 7The initial interest rate on the drawn amount was 2.454%.