By Cristal Cody
Eureka Springs, Ark., June 6 – Fortive Corp. sold $2.3 billion of senior notes in four tranches on Monday, according to a market source and company news release.
The notes (Baa1/BBB) were sold in connection with Fortive’s spinoff from Danaher Corp., which will guarantee the notes until the spinoff occurs.
Fortive priced $300 million of 1.8% three-year notes at Treasuries plus 90 basis points.
In the second tranche, the company sold $750 million of 2.35% five-year notes at Treasuries plus 110 bps.
Fortive brought $900 million of 3.15% 10-year notes at Treasuries plus 145 bps.
In the final tranche, the company sold $350 million of 4.3% 30-year notes at 175 bps over Treasuries.
All of the notes priced at the tight end of price talk.
Barclays, Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used to make payments to Danaher as consideration for the contribution of assets to Fortive by Danaher in connection with the separation and for general corporate purposes.
Fortive is an industrial growth company based in Everett, Wash.
| Issuer: | Fortive Corp.
|
| Guarantor: | Danaher Corp.
|
| Amount: | $2.3 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays, Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Pricing date: | June 6
|
| Settlement date: | June 20
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Distribution: | Rule 144A private placement
|
|
|
| Three-year notes
|
| Amount: | $300 million
|
| Maturity: | June 15, 2019
|
| Coupon: | 1.8%
|
| Spread: | Treasuries plus 90 bps
|
| Price guidance: | Treasuries plus 95 bps, plus or minus 5 bps
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | June 15, 2021
|
| Coupon: | 2.35%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 115 bps, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $900 million
|
| Maturity: | June 15, 2026
|
| Coupon: | 3.15%
|
| Spread: | Treasuries plus 145 bps
|
| Price guidance: | Treasuries plus 150 bps, plus or minus 5 bps
|
|
|
| 30-year notes
|
| Amount: | $350 million
|
| Maturity: | June 15, 2046
|
| Coupon: | 4.3%
|
| Spread: | Treasuries plus 175 bps
|
| Price guidance: | Treasuries plus 180 bps, plus or minus 5 bps
|
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