NEW YORK (GenomeWeb) – In a filing with the US Securities and Exchange Commission Tuesday afternoon, Danaher said it has entered into a new $3 billion 364-day revolving credit facility.
The company said it plans to use the liquidity from the credit facility to fund a portion of its impending $4 billion acquisition of Cepheid, which recently cleared antitrust requirements in the US, Germany, Austria, and South Africa.
The credit facility expires on Oct. 23, 2017. After that, Danaher may choose to pay a fee equal to 0.75 percent of the principal amount of the loans outstanding at that time, and convert those outstanding loans into term loans that are payable one year after the scheduled termination date.
The credit facility also requires Danaher to maintain a consolidated leverage of 0.65 to 1, or less.
"Danaher intends to use the credit facility for liquidity support for Danaher's expanded US and Euro commercial paper programs and for general corporate purposes," the company noted in its SEC filing. "Danaher intends to use proceeds from the issuance of short-term commercial paper notes to fund a portion of the purchase price for the pending acquisition of Cepheid."