Summary
Thermo Fisher Scientific Inc. (TMO) filed an 8-K on September 7, 2016, reporting the issuance and sale of senior notes totaling €1.6 billion. Specifically, the company issued €1,000,000,000 of 0.750% Senior Notes due 2024 and €600,000,000 of 1.375% Senior Notes due 2028. The primary purpose of this debt issuance is to finance a portion of the acquisition of FEI Company, which is valued at approximately $4.2 billion. The company anticipates that the FEI acquisition will be completed by the end of 2016, contingent upon customary closing conditions and regulatory approvals. This strategic move signals Thermo Fisher's commitment to growth through acquisition.
Key Highlights
- 1Thermo Fisher Scientific issued €1.6 billion in senior notes: €1 billion in 0.750% notes due 2024 and €0.6 billion in 1.375% notes due 2028.
- 2The net proceeds from the note issuance are approximately €1.58 billion after underwriting discounts and expenses.
- 3Proceeds will be used to partially fund the acquisition of FEI Company, which has an estimated purchase price of $4.2 billion.
- 4The acquisition of FEI Company is expected to close by December 31, 2016.
- 5The transaction is subject to the satisfaction of customary closing conditions and regulatory approvals.
- 6This debt issuance demonstrates Thermo Fisher's strategy to finance significant acquisitions through capital markets.
Frequently Asked Questions
The primary purpose of the senior note issuance is to finance a portion of the $4.2 billion acquisition of FEI Company. This indicates a strategic move to fund growth through acquisition.
The acquisition of FEI Company is expected to close by December 31, 2016, subject to standard closing conditions and necessary regulatory approvals.
Thermo Fisher Scientific issued €1,000,000,000 aggregate principal amount of 0.750% Senior Notes due 2024 and €600,000,000 aggregate principal amount of 1.375% Senior Notes due 2028.
Thermo Fisher Scientific expects to raise approximately €1.58 billion in net proceeds from the sale of these senior notes after deducting underwriting discounts and estimated offering expenses.