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Danaher greenshoe ups 4.75% convertible preferreds to $1.65 billion
By Wendy Van Sickle
Columbus, Ohio, March 1 – Underwriters for Danaher Corp.’s 4.75% three-year series A mandatory convertible preferred stock fully exercised their $150 million greenshoe, lifting the total deal size to $1.65 billion, according to a news release on Friday.
The company priced $1.5 billion of the convertible preferreds at of par of $1,000 after the market close on Tuesday with an initial conversion premium of 22.5%, as previously reported.
Pricing came richer than initial price talk for a dividend of 5.25% to 5.75% and at the rich end of talk for an initial conversion premium of 17.5% to 22.5%, according to a market source.
Barclays, Goldman Sachs & Co. LLC, Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are the bookrunners for the registered offering.
The initial size of the deal was $1.35 billion with a greenshoe of $135 million.
The mandatory convertible preferred stock priced concurrently with a $1.35 billion, or 11 million share, common stock offering, which priced at $123.00 per share.
The common share offering carried a greenshoe of $135 million, which was also exercised in full.
The mandatory convertible preferred stock has takeover and dividend protection for dividend payments above 22 cents per quarter.
The notes are callable upon the termination of Danaher’s acquisition of GE Life Sciences’ BioPharma division at the acquisition termination make-whole amount.
Net proceeds from the mandatory convertible preferred share offering are expected to be $1.45 billion, and net proceeds from the common stock offering are expected to be $1.31 billion.
Proceeds will be used to fund a portion of the cash consideration of the acquisition of GE Life Sciences’ BioPharma division.
Danaher is a Washington-based global science and technology company.
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