Danaher gets restated $4 billion five-year revolver, obtains new $7 billion 364-day revolver

By Tali Rackner

Norfolk, Va., July 10 – Danaher Corp. entered into an amended and restated $4 billion five-year unsecured multiyear revolving credit facility and a new $7 billion 364-day revolving credit facility on Friday, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent for the five-year revolver, and Citibank, NA is the agent for the 364-day revolver.

The five-year facility expires on July 10, 2020, subject to a one-year extension option. It replaces the existing $2.5 billion unsecured multiyear revolving credit facility.

The five-year revolver also includes an up to $1 billion accordion option.

Borrowings bear interest at Libor plus 65 basis points to 112.5 bps, depending on Danaher’s credit rating. There is an annual facility fee of 4 bps to 12.5 bps, based on total commitments.

The 364-day facility expires on July 8, 2016. Danaher, upon the payment of a fee equal to 0.75% of the principal amount of the loans then outstanding, may convert any loans outstanding on the scheduled termination date into term loans that are due and payable one year later.

Interest on the 364-day revolver is equal to Libor plus 71 bps, and there is a 4 bps facility fee.

Both facilities require Danaher to maintain a maximum consolidated leverage of 0.65 times. Borrowings under the facilities are prepayable at the company’s option in whole or in part without premium or penalty.

Proceeds will be used for liquidity support for the company’s expanded U.S. and euro commercial paper programs and for general corporate purposes. Danaher intends to use proceeds from the issuance of short-term commercial paper notes to fund a portion of the purchase price for the acquisition of Pall Corp.

For the five-year facility, Bank of America is a swingline lender; Citibank is the syndicate agent, Bank of Tokyo-Mitsubishi UFJ, Ltd., BNP Paribas Securities Corp., HSBC Bank USA, NA, U.S. Bank NA and Wells Fargo Bank, NA are co-documentation agents; and Merrill Lynch, Pierce, Fenner & Smith Inc., Citigroup Global Markets Inc., Bank of Tokyo-Mitsubishi, BNP Paribas, U.S. Bank, HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC are joint lead arrangers and bookrunners.

For the 364-day facility, Bank of America is the syndication agent, Deutsche Bank Securities Corp. and Barclays Bank plc are co-documentation agents, And Citigroup, Merrill Lynch, Deutsche Bank and Barclays are joint lead arrangers and bookrunners.

Washington, D.C.-based Danaher designs, manufactures and markets professional, medical, industrial, commercial and consumer products. Pall is a Port Washington, N.Y.-based supplier of filtration, separations and purification products.

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