HG bonds: Danaher targets euro debt with new long bonds; terms

Danaher Corp. today completed a $1 billion offering of 2.80% 30-year notes due Dec. 10, 2051, at T+105.

Proceeds will be used to redeem all of the outstanding €800 million of 2.5% 2025 notes, and any funds remaining will be used for general corporate purposes, according to regulatory filings.

Danaher last tapped the market in September 2020, when it placed a $1 billion offering of 2.60% 30-year notes due Oct. 1, 2050, at T+123.

S&P Global Ratings has maintained a positive outlook on its BBB+ rating since March. "The positive outlook reflects the likelihood we could upgrade Danaher in the next 24 months if we see fewer financial and execution risks from its recent and potential acquisitions, and we come to view the earnings it generated during 2020 as more sustainable. It also reflects our view that the company's adjusted debt to EBITDA will generally be below 3x over the long term," the agency said in ratings rationale published in July.

Moody's maintains a stable outlook on its Baa1 rating, which it affirmed in June, following Danaher's $9.6 billion acquisition of Aldevron, a contract manufacturer. The purchase was funded with cash on hand ($6.3 billion as of April 2) and commercial paper. "The ratings affirmation reflects Moody's view of Danaher's sizeable and diversified revenue base," Moody's said June 18.

Terms: