Summary
Thermo Fisher Scientific Inc. (TMO) announced on October 18, 2021, the issuance of €5.3 billion aggregate principal amount of senior notes through its indirect wholly-owned finance subsidiary, Thermo Fisher Scientific (Finance I) B.V. These notes are comprised of four tranches with varying interest rates and maturity dates, ranging from 0.800% due in 2030 to 2.000% due in 2051. The Company has provided a full and unconditional guarantee for these notes. The primary purpose of this substantial debt issuance is to fund a portion of the cash consideration for the previously announced acquisition of PPD, Inc. This strategic move underscores Thermo Fisher's commitment to its growth strategy, particularly in expanding its capabilities through significant acquisitions. Pending the closing of the PPD acquisition, the proceeds may be temporarily used for general corporate purposes, including other acquisitions, debt refinancing, working capital, capital expenditures, or equity repurchases.
Key Highlights
- 1Thermo Fisher Scientific (Finance I) B.V. issued €5.3 billion in senior notes across four tranches.
- 2The notes have coupon rates ranging from 0.800% to 2.000% and maturities from 2030 to 2051.
- 3Thermo Fisher Scientific Inc. fully and unconditionally guarantees the issued notes.
- 4The net proceeds are primarily intended to finance the acquisition of PPD, Inc.
- 5The notes are general unsecured obligations, ranking equally with other senior unsecured debt but subordinated to secured debt.
- 6The indenture includes limited covenants restricting liens on principal properties and sale-leaseback transactions.
- 7A change of control event coupled with a credit rating downgrade could trigger a mandatory offer to repurchase the notes at 101% of the principal amount.