Summary
Thermo Fisher Scientific Inc. (TMO) announced on July 19, 2017, the pricing of a significant debt offering to fund its pending acquisition of Patheon N.V. The company issued €500 million in floating rate senior notes due 2019 and a total of €2.1 billion in fixed-rate senior notes across maturities in 2026, 2029, and 2037. The total offering raised approximately €2.58 billion (or $2.95 billion), with net proceeds earmarked to finance a portion of the Patheon acquisition, including the assumption of Patheon's debt. The Patheon acquisition, valued at an estimated $7.2 billion in aggregate, is a key strategic move for Thermo Fisher. The proceeds from this debt issuance underscore the company's commitment to this transaction, which is expected to close by the end of 2017, pending regulatory approvals and shareholder consent from Patheon.
Key Highlights
- 1Thermo Fisher Scientific priced a public offering of €2.6 billion (approximately $2.95 billion) in senior notes.
- 2The debt issuance includes €500 million in Floating Rate Senior Notes due 2019, €700 million in 1.400% Senior Notes due 2026, €700 million in 1.950% Senior Notes due 2029, and €700 million in 2.875% Senior Notes due 2037.
- 3Net proceeds from the offering are intended to fund a portion of the acquisition of Patheon N.V.
- 4The funding specifically covers part of the consideration and the repayment of assumed indebtedness related to the Patheon acquisition.
- 5The Patheon acquisition has an estimated aggregate value of approximately $7.2 billion.
- 6The acquisition is expected to close by the end of 2017, subject to customary closing conditions.
- 7The notes were issued under a registration statement on Form S-3.