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Thermo Fisher Prices $1.5B Offering of Senior Notes

NEW YORK (GenomeWeb) – Thermo Fisher Scientific said yesterday that it has priced an offering of $1.5 billion aggregate principal amount of senior notes.

The company is aiming to raise $750 million through the issuance of its 3.2% senior notes due 2027 and $750 million aggregate principal amount through the issuance of its 4.1% senior notes due 2047.

The issuance of the notes is expected to close on Aug. 14, and the notes will pay interest on a semi-annual basis.

Thermo Fisher said it will use the proceeds from the offering to fund a portion of its $7.2 billion acquisition of contract development and manufacturing organization Patheon, including the repayment of indebtedness of Patheon to be assumed by Thermo Fisher. The company said it now expects to complete that deal around the end of the third quarter of 2017.

The joint book-running managers for the offering are Goldman Sachs, Citigroup Global Markets, JP Morgan Securities, and Merrill Lynch, Pierce, Fenner & Smith.

Earlier this week, the firm also announced it was planning to sell 8,771,930 shares of common stock at $171 per share for expected gross proceeds of approximately $1.5 billion. Thermo Fisher said those proceeds would also be used to fund a portion of the Patheon acquisition.

In Friday morning trade on the New York Stock Exchange, shares of Thermo Fisher were up around 1 percent at $173.39.