NEW YORK – Thermo Fisher Scientific said on Tuesday that it has priced an offering of €2.8 billion ($3.24 billion) aggregate principal amount of three types of senior notes.
The company is issuing €1.7 billion aggregate principal amount of its floating rate senior notes due 2023, at the issue price of 100.744 percent of their principal amount; €550 million aggregate principal amount of its 0.000 percent senior notes due 2023, at the issue price of 100.321 percent of their principal amount; and €550 million aggregate principal amount of its 0.000 percent senior notes due 2025, at the issue price of 99.868 percent of their principal amount.
The floating rate notes will pay interest quarterly, the company said. The offering is expected to close on or about Nov. 18.
The joint bookrunning managers for the offering are Barclays Bank, Morgan Stanley Europe, BofA Securities Europe, Citigroup Global Markets Europe, and Mizuho Securities Europe. Barclays Bank is also acting as the sustainability structuring agent for the sustainability notes.
Thermo Fisher said it intends to use a portion of the net proceeds from the sale of the floating rate and 2023 notes 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, and to assume approximately $3.5 billion of net debt.
A portion of the proceeds from the sale of the floating rate notes and the 2023 notes 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.
The company also said it intends to allocate an amount equal to the net proceeds from the sale of the 2025 notes to finance or refinance, in whole or in part, certain green or social eligible projects. Pending allocation to such projects, the net proceeds from the 2025 notes may be temporarily invested in cash, cash equivalents, short-term investments, or used to repay other borrowings.
In October, Thermo Fisher priced an offering of $5.85 billion aggregate principal amount of five types of senior notes and an offering of €5.25 billion aggregate principal amount of four types of euro-denominated notes. In August, the firm priced an offering of $3.1 billion aggregate principal amount of three types of senior notes. The company said it would use the proceeds from all these sales to pay for part of the PPD acquisition.