Summary
Thermo Fisher Scientific Inc. (TMO) announced on August 6, 2018, that its indirect wholly-owned finance subsidiary, Thermo Fisher Scientific (Finance I) B.V., has entered into an underwriting agreement for the issuance and sale of €600 million in Floating Rate Senior Notes due 2020. These notes are fully and unconditionally guaranteed on a senior unsecured basis by the parent company, Thermo Fisher Scientific Inc. The primary purpose of this offering is to refinance existing debt. The company expects to use the net proceeds of approximately €597.6 million, along with existing cash, to repay all outstanding indebtedness under Thermo Fisher International’s Floating Rate Senior Notes due 2018. This move aims to manage its debt structure and potentially lower its cost of borrowing.
Key Highlights
- 1Issuance of €600 million in Floating Rate Senior Notes due 2020 by a finance subsidiary.
- 2Notes are guaranteed by the parent company, Thermo Fisher Scientific Inc., on a senior unsecured basis.
- 3The offering is conducted under a registration statement previously filed with the SEC.
- 4Net proceeds expected to be approximately €597.6 million after underwriting discounts and expenses.
- 5Proceeds are earmarked to repay outstanding Floating Rate Senior Notes due 2018.
- 6The transaction is designed to refinance existing debt obligations.