Fortive obtains $1 billion 364-day delayed-draw term loan facility

By Sarah Lizee

Olympia, Wash., March 4 – Fortive Corp. entered into a term loan credit agreement with Bank of America, NA as administrative agent on Friday, providing for an up to $1 billion 364-day delayed-draw term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

The facility was undrawn at closing.

Fortive may borrow up to the full amount of the term loan through up to two draws until 90 days after the closing date. Repayment of the principal amount borrowed will be due no later than 364 days after the funding date.

Interest is Libor plus 75 basis points to 97.5 bps, depending on the company’s long-term debt credit rating.

The credit agreement requires the company to maintain a consolidated net leverage ratio of 3.5 to 1 or less, subject to increases under some circumstances. The credit agreement also requires the company to maintain a consolidated interest coverage ratio of 3.5 to 1 or more.

Merrill Lynch, Pierce, Fenner & Smith Inc. and Bank of Nova Scotia are joint lead arrangers and joint bookrunners. Scotia is the syndication agent.

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

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