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Thermo Fisher Scientific Prices $5.85B Senior Notes Offering

NEW YORK – Thermo Fisher Scientific said on Wednesday that it has priced an offering of $5.85 billion aggregate principal amount of five types of senior notes.

The company is issuing $1 billion aggregate principal amount of its 18-month floating rate senior notes due 2023; $500 million aggregate principal amount of its floating rate senior notes due 2023; $500 million aggregate principal amount of its floating rate senior notes due 2024; $1.35 billion aggregate principal amount of its 0.797 percent senior notes due 2023; and $2.5 billion aggregate principal amount of its 1.215 percent senior notes due 2024.

The floating rate notes will pay interest quarterly, and the fixed rate notes will pay interest on a semi-annual basis, the company said. The offering is expected to close on or about Oct. 22.

The joint bookrunning managers are Barclays Capital, Morgan Stanley, BofA Securities, Citigroup Global Markets, and Mizuho Securities USA.

Thermo Fisher said it intends to use the net proceeds to pay a portion of the cash consideration for its pending acquisition of PPD. The company agreed in April to pay $17.4 billion for the clinical research services provider, plus the assumption of approximately $3.5 billion of net debt.

A portion of the proceeds may also go toward general corporate purposes, which may include the acquisition of companies or businesses, repayment and refinancing of debt, working capital and capital expenditures, or the repurchase of outstanding equity securities. Thermo Fisher may also temporarily invest the net proceeds in short-term, liquid investments until they are used for their ultimate purpose.

Earlier this month, Thermo Fisher priced an offering of €5.25 billion ($6.06 billion) aggregate principal amount of four types of euro-denominated notes, and in August, it priced an offering of $3.1 billion aggregate principal amount of three types of senior notes. The company also said it would use the proceeds from these sales to pay in part for the PPD acquisition.

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