Fortive enters $1 billion 364-day delayed-draw term loan facility

By Rebecca Melvin

Concord, N.H., Dec. 22 – Fortive Corp. entered into a term loan credit agreement with Bank of America, NA as administrative agent on Dec. 16, providing for an up to $1 billion 364-day delayed-draw term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

The facility was drawn down and borrowed in full at closing.

Borrowings under the facility bear interest at Libor plus 60 basis points to 80 bps, depending on the company’s long-term debt credit rating.

The credit agreement requires the company to maintain a consolidated net leverage ratio of 3.5 to 1 or less, subject to increases under some circumstances. The ratio will be tested beginning with the fiscal quarter ending April 1, 2022.

Borrowings are prepayable at the company’s option in whole or in part without premium or penalty, and amounts borrowed may not be reborrowed once repaid.

BofA Securities Inc. and Bank of Nova Scotia are joint lead arrangers and joint bookrunners.

Fortive is an industrial growth company based in Everett, Wash.

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