Thermo Fisher Scientific Announces Redemption of Senior Notes

Rhea-AI Summary

Thermo Fisher Scientific (NYSE: TMO) announced its intention to redeem approximately $2.6 billion of Senior Notes on January 15, 2021. This includes €0.5 billion of 2.150% Senior Notes due 2022, $1.0 billion of 3.000% Senior Notes due 2023, and $1.0 billion of 4.150% Senior Notes due 2024. The redemption price will be based on either the principal amount or the present value of remaining scheduled payments. Funding for this redemption will come from cash on hand. Thermo Fisher continues to lead in scientific innovation with annual revenues exceeding $25 billion.

Positive

• Intent to redeem $2.6 billion Senior Notes may improve financial flexibility.
• Reduction of debt could enhance credit rating and lower future interest expenses.

Negative

• None.

WALTHAM, Mass., Dec. 30, 2020 /PRNewswire/ -- Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, today announced that on December 31, 2020, it will give notice of its intention to redeem the following Senior Notes, representing an aggregate total principal amount of approximately $2.6 billion, on January 15, 2021 (the "Redemption Date"):

• €0.5 billion aggregate principal amount of 2.150% Senior Notes due 2022 (NYSE: TMO 22A) (the "2022 Notes")
• $1.0 billion aggregate principal amount of 3.000% Senior Notes due 2023 (the "2023 Notes")
• $1.0 billion aggregate principal amount of 4.150% Senior Notes due 2024 (the "2024 Notes" and, together with the 2022 Notes and the 2023 Notes, the "Notes")

The Notes will be redeemed at a redemption price equal to the greater of (1) 100% of the principal amount of the Notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of the Notes to be redeemed discounted to the Redemption Date (a) on an annual basis at a comparable bond rate plus 25 basis points in the case of the 2022 Notes, (b) on a semi-annual basis at a comparable treasury rate plus 25 basis points in the case of the 2023 Notes and (c) on a semi-annual basis at a comparable treasury rate plus 20 basis points in the case of the 2024 Notes, plus, in each case, accrued and unpaid interest on the Notes to be redeemed to, but excluding, the Redemption Date. Thermo Fisher intends to fund the redemption using cash on hand.

About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue exceeding $25 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, improving patient diagnostics and therapies or increasing productivity in their laboratories, we are here to support them. Our global team of more than 75,000 colleagues delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services and Patheon. For more information, please visit www.thermofisher.com.

Media Contact Information:
Ron O'Brien
Phone: 781-622-1242
E-mail: ron.obrien@thermofisher.com
Website: www.thermofisher.com

Investor Contact Information:
Ken Apicerno
Phone: 781-622-1294
E-mail: ken.apicerno@thermofisher.com

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SOURCE Thermo Fisher Scientific

FAQ

What is the total amount of Senior Notes Thermo Fisher is redeeming?

Thermo Fisher is redeeming approximately $2.6 billion of Senior Notes.

When is the redemption date for Thermo Fisher's Senior Notes?

The redemption date for Thermo Fisher's Senior Notes is January 15, 2021.

What types of Senior Notes is Thermo Fisher redeeming?

Thermo Fisher is redeeming €0.5 billion of 2.150% Senior Notes due 2022, $1.0 billion of 3.000% Senior Notes due 2023, and $1.0 billion of 4.150% Senior Notes due 2024.

How will Thermo Fisher fund the redemption of its Senior Notes?

Thermo Fisher intends to fund the redemption using cash on hand.

What is Thermo Fisher's annual revenue?

Thermo Fisher has annual revenue exceeding $25 billion.