Summary
Thermo Fisher Scientific Inc. (TMO) announced on April 20, 2010, the completion of a public offering of $750 million in senior notes, comprising $450 million of 3.200% Senior Notes due 2015 and $300 million of 4.700% Senior Notes due 2020. The net proceeds from this offering are expected to be approximately $741.8 million. The company has a clear strategy for utilizing these proceeds. A significant portion, up to $226.5 million, will be used to redeem or settle outstanding Floating Rate Convertible Senior Debentures due 2033. Additionally, approximately $515.3 million will be allocated to redeem all outstanding 6 1/8% Senior Subordinated Notes due 2015 on July 1, 2010. Any remaining funds will be used for general corporate purposes.
Key Highlights
- 1TMO successfully issued $750 million in senior notes across two tranches: 3.200% notes due 2015 and 4.700% notes due 2020.
- 2Net proceeds from the offering are approximately $741.8 million.
- 3Proceeds will be used to redeem or settle up to $226.5 million of Floating Rate Convertible Senior Debentures due 2033.
- 4A substantial portion of proceeds, $515.3 million, will be used to redeem the 6 1/8% Senior Subordinated Notes due 2015 on July 1, 2010.
- 5The company has entered into interest rate swaps for the 2015 Notes to effectively convert the fixed rate to a floating rate (6-month LIBOR + 45.12 bps).
- 6The offering was conducted through an underwriting agreement with Banc of America Securities LLC, Deutsche Bank Securities Inc., and J.P. Morgan Securities Inc.
- 7Any residual funds after debt management will be applied to general corporate purposes.
Frequently Asked Questions
This Form 8-K filing announces Thermo Fisher Scientific's (TMO) completion of a public offering of $750 million in senior notes and outlines the intended use of the proceeds, primarily for debt redemption and settlement.
The company plans to use up to $226.5 million to redeem or settle outstanding convertible debentures and approximately $515.3 million to redeem its 6 1/8% Senior Subordinated Notes due 2015. Remaining proceeds will be used for general corporate purposes.
TMO issued $450 million of 3.200% Senior Notes due 2015 and $300 million of 4.700% Senior Notes due 2020.
Yes, Thermo Fisher Scientific has entered into interest rate swaps for the 3.200% Senior Notes due 2015. These swaps will effectively convert the fixed interest rate to a floating rate, tied to 6-month LIBOR plus 45.12 basis points.