New Issue: Thermo Fisher details $3.1 billion senior notes due 2028, 2031, 2041

By Marisa Wong

Los Angeles, Aug. 10 – Thermo Fisher Scientific Inc. disclosed details of its $3.1 billion of senior notes in three tranches (Baa1/BBB+/BBB+) in an FWP filed Tuesday with the Securities and Exchange Commission.

Thermo Fisher priced $700 million of 1.75% notes due Oct. 15, 2028 at 99.952 to yield 1.757%, or a spread of 65 basis points over Treasuries.

The notes were talked in the Treasuries plus 90 bps area, according to a market source.

The company also priced $1.2 billion of 2% notes due Oct. 15, 2031 at 98.827 to yield 2.129%, or a spread of 80 bps over Treasuries.

The notes were talked in the Treasuries plus 105 bps area.

Finally, the company priced $1.2 billion of 2.8% notes due Oct. 15, 2041 at 99.508 to yield 2.832%, or a spread of 95 bps over Treasuries.

The notes were talked in the Treasuries plus 115 bps area.

The notes feature a make-whole call and then a par call.

Barclays, Morgan Stanley & Co. LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, MUFG Securities Americas Inc., SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are the joint bookrunners.

Proceeds will be used to pay the cash consideration for the company’s planned acquisition of PPD, Inc. for $47.50 per share, or a total cash purchase price of $17.4 billion.

Thermo Fisher is a Waltham, Mass.-based science technology company.

Issuer:	Thermo Fisher Scientific Inc.
Amount:	$3.1 billion
Description:	Senior notes
Bookrunners:	Barclays, Morgan Stanley & Co. LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, MUFG Securities Americas Inc., SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
Co-managers:	Academy Securities, Inc., AmeriVet Securities, Inc., Blaylock Van, LLC, BNY Mellon Capital Markets, LLC, KeyBanc Capital Markets Inc., Loop Capital Markets LLC, RBC Capital Markets, LLC, R. Seelaus & Co., LLC and Scotia Capital (USA) Inc.
Trade date:	Aug. 9
Settlement date:	Aug. 23
Ratings:	Moody’s: Baa1
	S&P: BBB+
	Fitch: BBB+
Distribution:	SEC registered
2028 notes
Amount:	$700 million
Maturity:	Oct. 15, 2028
Coupon:	1.75%
Price:	99.952
Yield:	1.757%
Spread:	Treasuries plus 65 bps
Price guidance:	Treasuries plus 90 bps area
Call features:	Make-whole call at Treasuries plus 10 bps prior to Aug. 15, 2028; par call after that
2031 notes
Amount:	$1.2 billion
Maturity:	Oct. 15, 2031
Coupon:	2%
Price:	98.827
Yield:	2.129%
Spread:	Treasuries plus 80 bps
Price guidance:	Treasuries plus 105 bps area
Call features:	Make-whole call at Treasuries plus 15 bps prior to July 15, 2031; par call after that
2041 notes
Amount:	$1.2 billion
Maturity:	Oct. 15, 2041
Coupon:	2.8%
Price:	99.508
Yield:	2.832%, or a spread of 95 bps
Spread:	Treasuries plus 95 bps
Price guidance:	Treasuries plus 115 bps area
Call features:	Make-whole call at Treasuries plus 15 bps prior to April 15, 2041; par call after that

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.