Summary
Thermo Fisher Scientific Inc. (TMO) announced on August 9, 2011, that it has entered into an underwriting agreement to issue and sell $2.1 billion in aggregate principal amount of senior notes. This offering includes $1.0 billion of 2.250% Senior Notes due 2016 and $1.1 billion of 3.600% Senior Notes due 2021. The proceeds from this offering are primarily intended to fund a portion of the acquisition of the Phadia group of companies, a significant strategic move for Thermo Fisher. The company expects to receive approximately $2.08 billion in net proceeds after accounting for underwriting discounts and offering expenses. The Phadia acquisition is estimated to cost approximately EUR 2.47 billion (around $3.5 billion). Thermo Fisher plans to cover the remaining acquisition costs through existing cash, anticipated commercial paper issuance, and its bridge credit facility, with a revolving credit facility as a backstop. This financing strategy highlights the company's commitment to growth through acquisitions while managing its capital structure.
Key Highlights
- 1Thermo Fisher Scientific is raising $2.1 billion through the issuance of senior notes.
- 2The offering consists of $1.0 billion in 2.250% Senior Notes due 2016 and $1.1 billion in 3.600% Senior Notes due 2021.
- 3The net proceeds are intended to partially fund the acquisition of the Phadia group of companies.
- 4The Phadia acquisition is estimated to cost approximately $3.5 billion.
- 5The company plans to utilize a combination of cash, commercial paper, and credit facilities for the remaining acquisition funding.
- 6The issuance is being conducted under a registration statement on Form S-3.
- 7The notes will be issued under an indenture dated November 20, 2009, as supplemented.