8-KOther EventsExhibits & Filings

THERMO FISHER SCIENTIFIC INC. 8-K Report, Corporate Update (Dec 6, 2013)

Filed December 6, 2013For Securities:TMO

Summary

Thermo Fisher Scientific Inc. (TMO) announced a significant debt financing event on December 4, 2013, filing a Form 8-K to report the issuance and sale of a substantial aggregate principal amount of senior notes totaling $3.2 billion. This offering included tranches of notes maturing in 2017, 2019, 2024, and 2044, with varying interest rates. The primary purpose of this debt issuance is to secure a portion of the funding required for Thermo Fisher's pending acquisition of Life Technologies Corporation. The company anticipates net proceeds of approximately $3.17 billion from this offering, after accounting for underwriting discounts and estimated expenses. The proceeds are earmarked to cover a part of the cash consideration for the Life Technologies Acquisition, which has an estimated aggregate value of around $13.6 billion. Thermo Fisher also indicated that additional debt financing may be necessary to cover the remaining purchase price, depending on the closing timing and available cash. This strategic move underscores Thermo Fisher's commitment to expanding its operations through a major acquisition.

Key Highlights

  • 1Thermo Fisher Scientific Inc. (TMO) issued and sold $3.2 billion in aggregate principal amount of senior notes.
  • 2The offering included four tranches of notes: 1.30% due 2017, 2.40% due 2019, 4.15% due 2024, and 5.30% due 2044.
  • 3The primary use of the net proceeds is to fund a portion of the cash consideration for the acquisition of Life Technologies Corporation.
  • 4The estimated net proceeds from the offering are approximately $3.17 billion, after deducting expenses.
  • 5The total estimated value of the Life Technologies Corporation acquisition is approximately $13.6 billion.
  • 6The company may need to incur additional indebtedness to finance the remaining balance of the Life Technologies Acquisition.
  • 7The debt offering was conducted under a registration statement on Form S-3.

Frequently Asked Questions

The primary purpose of issuing these senior notes was to raise capital to fund a portion of the cash consideration required for Thermo Fisher Scientific's acquisition of Life Technologies Corporation.

Thermo Fisher Scientific raised approximately $3.17 billion in net proceeds from the sale of $3.2 billion in aggregate principal amount of senior notes, after deducting underwriting discounts and estimated offering expenses.

No, this debt issuance is intended to fund only a portion of the cash consideration for the Life Technologies acquisition. The company stated that it may incur additional indebtedness to finance the balance of the purchase price, depending on the timing of the acquisition's closing and available cash.

The senior notes issued include $900 million of 1.30% Senior Notes due 2017, $900 million of 2.40% Senior Notes due 2019, $1 billion of 4.15% Senior Notes due 2024, and $400 million of 5.30% Senior Notes due 2044.