Danaher restated five-year, new 364-day revolvers total $10 billion

By Wendy Van Sickle

Columbus, Ohio, Aug. 29 – Danaher Corp. entered into an amended and restated $5 billion five-year unsecured multiyear revolving credit facility and a new $5 billion 364-day revolving credit facility on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent for each of the revolvers.

The five-year facility expires on Aug. 27, 2024, subject to a one-year extension option. It replaces the existing $4 billion unsecured multiyear revolver.

The five-year revolver also includes an up to $2.5 billion accordion option.

Borrowings bear interest at Libor plus 58.5 basis points to 100 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 Aug. 25, 2020. 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 59.5 bps to 100.5 bps, depending on Danaher’s credit rating. There is an annual facility fee of 3 bps to 12 bps, based on total commitments.

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 the Biopharma Business of GE Life Sciences.

For each credit facility, BofA Securities, Inc., Citigroup Global Markets Inc., Wells Fargo Securities, LLC, MUFG Bank, Ltd., BNP Paribas Securities Corp., U.S. Bank NA, HSBC Securities (USA) Inc., JPMorgan Chase Bank, NA, Barclays Bank plc and Mizuho Bank, Ltd. are joint lead arrangers and bookrunners.

Co-documentation agents are Wells Fargo Bank, MUFG, BNP Paribas, U.S. Bank, HSBC Bank USA, NA, JPMorgan Barclays and Mizuho. Citibank is the syndication agent.

Washington, D.C.-based Danaher designs, manufactures and markets professional, medical, industrial, commercial and consumer products.

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