Bruker Announces $500 Million Private Placement of Senior Notes to Support Strategic Growth Objectives

Rhea-AI Summary

Bruker Corporation (Nasdaq: BRKR) has completed a private placement of 10-year senior notes totaling $500 million to enhance financial flexibility and support growth initiatives. The issuance includes 300 million Swiss Franc 0.88% Series A senior notes and 150 million Euro 1.03% Series B senior notes, both due December 8, 2031. The funds will be used for general corporate purposes, including repaying maturing debts. The financing capitalizes on favorable interest rates, locking in fixed costs for the next decade.

Positive

• Completion of $500 million senior notes private placement enhances financial flexibility.
• Low interest rates locked in for the next decade with 0.88% and 1.03% rates.
• Proceeds support strategic growth initiatives and repayment of maturing debt.

Negative

• None.

BILLERICA, Mass.--(BUSINESS WIRE)-- Bruker Corporation (Nasdaq: BRKR) announced today that it has completed a new private placement of 10-year senior notes in the aggregate principal amount of $500 million to enhance its financial flexibility and fund strategic growth objectives.

Gerald Herman, Bruker’s Executive Vice President & Chief Financial Officer, commented “This new debt financing capitalizes on the low interest rate environment in European capital markets, locks in attractive fixed rates for the next decade, and provides Bruker with significantly expanded capacity to continue investment in our Project Accelerate 2.0 initiatives and future strategic opportunities.”

Under private placement note terms, 300 million Swiss Franc 0.88% Series A senior notes and 150 million Euro 1.03% Series B senior notes due December 8, 2031, were issued and sold to a limited number of accredited institutional investors in an offering exempt from the registration requirements of the Securities Act of 1933, as amended.

Bruker intends to use proceeds from this financing for general corporate purposes, including the repayment of maturing debt obligations and to support strategic growth objectives.

The new financing arrangements are subject to customary affirmative and negative covenants and other terms as detailed in a filing with the Securities and Exchange Commission on Form 8-K, dated December 8, 2021.

About Bruker Corporation (Nasdaq: BRKR)

Bruker is enabling scientists to make breakthrough discoveries and develop new applications that improve the quality of human life. Bruker’s high-performance scientific instruments and high-value analytical and diagnostic solutions enable scientists to explore life and materials at molecular, cellular and microscopic levels. In close cooperation with our customers, Bruker is enabling innovation, improved productivity and customer success in life science molecular research, in applied and pharma applications, in microscopy and nanoanalysis, and in industrial applications, as well as in cell biology, preclinical imaging, clinical phenomics and proteomics research and clinical microbiology. For more information, please visit: www.bruker.com.

Forward Looking Statements

Any statements contained in this press release which do not describe historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the expected interest cost reduction associated with the financing arrangements. Any forward-looking statements contained herein are based on current expectations, but are subject to risks and uncertainties that could cause actual results to differ materially from those indicated, including, but not limited to, risks and uncertainties relating to adverse changes in conditions in the global economy and volatility in the capital markets, fluctuations in foreign currency exchange rates, our ability to successfully implement and execute on our capital management initiatives, our ability to maintain our leverage and interest coverage ratios required by the financing arrangements, our ability to make payments on our financial obligations when they become due, and other risk factors discussed from time to time in our filings with the Securities and Exchange Commission, or SEC. These and other factors are identified and described in more detail in our filings with the SEC, including, without limitation, our annual report on Form 10-K for the year ended December 31, 2020. We expressly disclaim any intent or obligation to update these forward-looking statements other than as required by law.

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Investor Relations

Bruker Corporation

T: +1 (978) 663 – 3660, ext. 1479

E: Investor.Relations@bruker.com

Source: Bruker Corporation

FAQ

What is the recent financing announcement from Bruker Corporation (BRKR)?

Bruker Corporation announced a private placement of 10-year senior notes totaling $500 million to enhance financial flexibility and support growth.

How will Bruker use the proceeds from the $500 million senior notes?

The proceeds will be used for general corporate purposes, including repayment of maturing debt and funding strategic growth initiatives.

What are the interest rates for Bruker's new senior notes?

The new senior notes include 0.88% Series A notes and 1.03% Series B notes, both due on December 8, 2031.

When do the new senior notes from Bruker mature?

The new senior notes issued by Bruker will mature on December 8, 2031.