Summary
Thermo Fisher Scientific Inc. (TMO) filed an 8-K on October 20, 2022, to report the entry into a material definitive agreement related to the issuance of senior notes. The company successfully raised approximately ¥109.1 billion (net proceeds) through a public offering of senior notes with various maturity dates ranging from 2025 to 2052. These notes carry interest rates between 0.853% and 2.382% and are unsecured general obligations of the company. The proceeds from this offering are earmarked for general corporate purposes. This includes potential acquisitions, debt repayment or refinancing, working capital needs, capital expenditures, or the repurchase of outstanding equity. The company may also temporarily invest these funds in short-term, liquid investments until their ultimate use. The issuance of these notes was conducted under an indenture agreement, as supplemented by a Twenty-Fourth Supplemental Indenture.
Key Highlights
- 1Thermo Fisher Scientific issued ¥109.1 billion (net) in senior notes with maturities spanning from 2025 to 2052.
- 2The notes carry interest rates ranging from 0.853% to 2.382%.
- 3Proceeds are intended for general corporate purposes, including potential acquisitions, debt management, working capital, and capital expenditures.
- 4The issuance involved multiple tranches of notes, with varying principal amounts and coupon rates.
- 5The notes are general unsecured obligations of the company and rank equally with existing unsecured and unsubordinated debt.
- 6The Indenture contains covenants restricting the ability to incur secured debt on Principal Properties and engage in certain sale and lease-back transactions.
- 7A change of control event, coupled with a credit rating downgrade, may trigger an offer to repurchase the notes at 101% of their principal amount.