Published on 3/23/2020 in the Prospect News Investment Grade Daily.
New Issue: Thermo Fisher Scientific prices $2.2 billion of five-, 10-year notes
By Cristal Cody
Tupelo, Miss., March 23 – Thermo Fisher Scientific Inc. priced a $2.2 billion two-part offering of senior notes (Baa1/BBB+/BBB) on Monday, according to a market source and FWP filings with the Securities and Exchange Commission.
A $1.1 billion tranche of 4.133% five-year notes priced at par to yield a spread of Treasuries plus 375 basis points.
Thermo Fisher sold $1.1 billion of 4.497% 10-year notes at par to yield a Treasuries plus 375 bps spread.
Initial price talk on both tranches was at the Treasuries plus 400 bps area.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Securities, Inc., Deutsche Bank Securities Inc. and Mizuho Securities USA Inc. were the bookrunners.
Proceeds will be used to help fund the company’s acquisition of Qiagen NV and for general corporate purposes.
Thermo Fisher is a Waltham, Mass.-based science technology company.
| Issuer: | Thermo Fisher Scientific Inc.
|
| Amount: | $2.2 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Securities, Inc., Deutsche Bank Securities Inc. and Mizuho Securities USA Inc.
|
| Co-managers: | HSBC Securities (USA) Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, MUFG, SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc., ING Financial Markets LLC, KeyBanc Capital Markets Inc., Loop Capital Markets LLC, R. Seelaus & Co., LLC, Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC
|
| Trade date: | March 23
|
| Settlement date: | March 25
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1.1 billion
|
| Maturity: | March 25, 2025
|
| Coupon: | 4.133%
|
| Price: | Par
|
| Yield: | 4.133%
|
| Spread: | Treasuries plus 375 bps
|
| Call features: | Make-whole call before Feb. 25, 2025 at Treasuries plus 50 bps; thereafter at par
|
| Price guidance: | Treasuries plus 400 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.1 billion
|
| Maturity: | March 25, 2030
|
| Coupon: | 4.497%
|
| Price: | Par
|
| Yield: | 4.497%
|
| Spread: | Treasuries plus 375 bps
|
| Call features: | Make-whole call before Dec. 25, 2029 at Treasuries plus 50 bps; thereafter at par
|
| Price guidance: | Treasuries plus 400 bps area
|
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