Summary
Thermo Fisher Scientific Inc. announced on September 14, 2016, the successful completion of a public offering of $1.2 billion in aggregate principal amount of 2.950% Senior Notes due 2026. The company anticipates receiving approximately $1.18 billion in net proceeds after accounting for underwriting discounts and offering expenses. These proceeds are strategically earmarked for significant financial maneuvers. A substantial portion will be used to redeem the entire $900 million of outstanding 1.30% senior notes maturing in February 2017. The remaining funds are allocated for general corporate purposes, offering flexibility for debt management, capital expenditures, potential acquisitions, and other operational needs.
Key Highlights
- 1Thermo Fisher Scientific Inc. issued $1.2 billion in 2.950% Senior Notes due 2026.
- 2The offering is expected to generate net proceeds of approximately $1.18 billion.
- 3A significant portion of the proceeds will be used to redeem $900 million of 1.30% senior notes due 2017.
- 4This action proactively addresses upcoming debt maturities.
- 5The remaining proceeds will fund general corporate purposes, providing financial flexibility.
- 6Potential uses for remaining funds include debt repayment, capital expenditures, and acquisitions.
Frequently Asked Questions
The primary purpose of issuing these new senior notes is to raise capital to redeem the company's outstanding 1.30% senior notes due 2017 and to provide funds for general corporate purposes, which offers financial flexibility.
Thermo Fisher Scientific raised $1.2 billion in aggregate principal amount of senior notes, with an expected net proceeds of approximately $1.18 billion after deducting underwriting discounts and estimated offering expenses.
The company intends to use a portion of the net proceeds from the new note issuance to redeem all of the outstanding $900 million aggregate principal amount of its 1.30% senior notes due 2017.
The remaining net proceeds are intended for general corporate purposes. This may include repaying or refinancing other indebtedness, funding capital expenditures, pursuing possible acquisitions, supporting working capital needs, or repurchasing outstanding equity securities.