Fortive closes $1.75 billion 364-day delayed-draw term loan facility

By Marisa Wong

Morgantown, W.Va., Aug. 22 – Fortive Corp. entered into a credit agreement on Wednesday for a 364-day delayed-draw term loan facility totaling $1.75 billion, according to an 8-K filing with the Securities and Exchange Commission.

Merrill Lynch, Pierce, Fenner & Smith Inc. and Bank of Nova Scotia are joint lead arrangers and joint bookrunners with Bank of America, NA as administrative agent and Scotiabank as syndication agent.

The company did not borrow any funds under the credit agreement at closing. The full amount of the term loan is available through a single draw during the period from and including Aug. 22 to noon on the date that falls 60 days after the closing date.

Repayment of the principal amount borrowed is due no later than 364 days after the funding date.

Borrowings will bear interest at Libor plus 75 basis points to 97.5 bps, depending on the company’s long-term debt credit rating, subject to a 0% floor.

The credit agreement requires the company to maintain a consolidated net leverage ratio of 3.50 to 1.00 or less, subject to some exceptions. The credit agreement also requires the company to maintain a consolidated interest coverage ratio of 3.50 to 1.00 or more.

Fortive is an industrial growth company based in Everett, Wash.

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