By Sarah Lizee
Olympia, Wash., Sept. 16 – Waters Corp. sold two series of senior notes totaling $500 million, according to an 8-K filing with the Securities and Exchange Commission.
The notes include $200 million of 3.31% series L notes due Sept. 12, 2026 and $300 million of 3.53% series M notes due Sept. 12, 2029.
Proceeds will be used to repay outstanding debt and for general corporate purposes.
Interest is payable semiannually.
The company may prepay some or all of the senior notes at any time in an amount not less than 10% of the total principal amount of the senior notes then outstanding, plus the applicable make-whole amount.
In the event of a change in control, the company may be required to prepay the senior notes at par plus accrued interest.
The company is subject to covenants that require it to maintain financial ratios, including an interest coverage ratio as of the end of each fiscal quarter and calculated for the period of the four consecutive preceding fiscal quarters of no less than 3.5 to 1 and a leverage ratio as of the end of each fiscal quarter of no more than 3.5 to 1. Following the completion of a material acquisition of $400 million or more, the company may elect to increase the maximum leverage ratio to 4 to 1.
During the period of time where the leverage ratio exceeds 3.5 to 1, the interest payable on the senior notes will increase by 50 basis points.
Waters is an analytical instrument manufacturer based in Milford, Mass.
| Issuer: | Waters Corp.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Call option: | At any time in an amount not less than 10% of the total principal amount then outstanding plus the applicable make-whole amount
|
| Settlement date: | Sept. 12
|
| Distribution: | Private placement
|
|
|
| Series L
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| Amount: | $200 million
|
| Coupon: | 3.31%, payable semiannually
|
| Maturity: | Sept. 12, 2026
|
|
|
| Series M
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| Amount: | $300 million
|
| Coupon: | 3.53%, payable semiannually
|
| Maturity: | Sept. 12, 2029
|
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