By Andrea Heisinger
New York, Aug. 15 - Thermo Fisher Scientific Inc. priced $1.3 billion of senior notes (Baa1/A-/BBB+) in two tranches on Wednesday, according to a market source and a press release from the company.
The $500 million of 1.85% notes due 2018 were sold at 99.985 to yield 1.853% with a spread of 105 basis points over Treasuries. The notes were priced at the tight end of guidance in the 110 bps area, plus or minus 5 bps.
An $800 million tranche of 3.15% notes due 2023 was priced at 99.475 to yield 3.21% with a spread of Treasuries plus 140 bps. The notes were sold at the low end of talk in the 145 bps area, with a margin of plus or minus 5 bps.
The bonds feature a change-of-control put at 101%.
Goldman Sachs & Co., J.P. Morgan Securities LLC and RBS Securities Inc. were the active bookrunners. Passive bookrunners were Barclays, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC.
Proceeds will be used to fund the $925 million cash consideration of the One Lambda Inc. acquisition and for general corporate purposes.
There is a mandatory call on the notes due 2023 if the merger is not completed by Dec. 31 or terminated before that date.
Thermo Fisher, a Waltham, Mass.-based science technology company, was last in the market with a $2.1 billion offering of 2.25% five-year notes priced at 115 bps over Treasuries and 3.6% 10-year notes sold at 130 bps over Treasuries on Aug. 9, 2011.
| Issuer: | Thermo Fisher Scientific Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.3 billion
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, RBS Securities Inc. (active), Barclays, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC (passive)
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 15
|
| Settlement date: | Aug. 22
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Fitch: BBB+
|
|
|
| Notes due 2018
|
| Amount: | $500 million
|
| Maturity: | 2018
|
| Coupon: | 1.85%
|
| Price: | 99.985
|
| Yield: | 1.853%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | 110 bps area, plus or minus 5 bps
|
|
|
| Notes due 2023
|
| Amount: | $800 million
|
| Maturity: | 2023
|
| Coupon: | 3.15%
|
| Price: | 99.475
|
| Yield: | 3.21%
|
| Spread: | Treasuries plus 140 bps
|
| Mandatory call: | If One Lambda merger not done by Dec. 31 or terminated
|
| Price talk: | 145 bps area, plus or minus 5 bps
|
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