NEW YORK (GenomeWeb) – Thermo Fisher Scientific has entered into a $2 billion bridge credit agreement, a $2 billion term loan agreement, and a $2.5 billion revolving credit agreement, the company said in a July 1 filing with the US Securities and Exchange Commission.
Thermo Fisher said that the bridge credit agreement is a 364-day unsecured bridge loan facility of up to $2 billion among the company, its lenders, and administrative agent JPMorgan Chase Bank. The availability of the $2 billion is contingent on the completion of Thermo Fisher's acquisition of electron microscopy company FEI. The proceeds from the loan will be used by Thermo Fisher to help fund the acquisition, including repaying FEI's debt and all or a portion of the transaction costs associated with the deal.
Thermo Fisher said in May that it was going to acquire FEI for $4.2 billion in cash.
The term loan credit agreement is a three-year senior unsecured term loan facility of up to $2 billion among Thermo Fisher, other borrowers, lenders, and administrative agent JPMorgan Chase Bank, and is also conditioned upon the acquisition of FEI. It, too, will be used to help fund the acquisition.
The revolving credit agreement is a five-year senior unsecured revolving facility of up to $2.5 billion among Thermo Fisher, certain subsidiaries, lenders, and administrative agent Bank of America. The agreement replaces Thermo Fisher's existing $1.5 billion, five-year revolving credit agreement from 2013.
Thermo Fisher will use the proceeds of the loan to repay all obligations under the prior credit agreement and for working capital purposes; capital expenditures; acquisitions; repurchases of stock, debentures, and other securities; the refinancing of present and future debt; and other corporate purposes.