Summary
Thermo Fisher Scientific Inc. announced on September 12, 2019, its intention to redeem its outstanding 4.700% Senior Notes due 2020 and 3.150% Senior Notes due 2023. The total principal amount to be redeemed is $300 million for the 2020 Notes and $800 million for the 2023 Notes. This redemption is scheduled to occur on September 27, 2019. The company plans to fund these redemptions through the issuance of new debt. This strategic move suggests a potential refinancing effort, likely to secure more favorable interest rates or to adjust its debt maturity profile. Investors should monitor the terms of the new debt issuance and its impact on the company's leverage and interest expense.
Key Highlights
- 1Thermo Fisher Scientific is redeeming all of its 4.700% Senior Notes due 2020 ($300 million principal).
- 2Thermo Fisher Scientific is also redeeming all of its 3.150% Senior Notes due 2023 ($800 million principal).
- 3The redemption date for both series of notes is September 27, 2019.
- 4Redemption prices are calculated based on a premium over principal plus accrued interest, using comparable treasury rates.
- 5The company intends to finance these redemptions by issuing new debt.
- 6This action indicates a potential debt refinancing strategy.