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Danaher (DHR) Prices Senior Notes Offering Worth Euro 750M
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Danaher Corporation (DHR - Free Report) on Apr 3 announced the pricing of reopening of €750 million worth of senior notes. The offering will close on Apr 8, 2020.
It is worth mentioning here that the company’s shares have declined 0.94% on Apr 3, ending the trading session at $135.15.
Inside the Headlines
As noted, the offerings will comprise €150 million of 1.700% senior notes due to expire on Mar 30, 2024; €300 million of 2.100% senior notes due to expire on Sep 30, 2026; and €300 million of 2.500% senior notes due to expire on Mar 30, 2030.
Notes due to expire in 2024 have been priced at 100.298% of the principal amount plus interest (accrued). Moreover, the 2026 notes have been priced at 100.842% of the principal amount plus accrued interest. Also, the notes due 2030 have been offered to the public at 102.166% of the principal amount plus accrued interest.
Interest on the senior notes will be paid out annually. The first interest payment will be made on Mar 30, 2021, for the 2024 notes; on Sep 30, 2020, for the 2026 notes and on Mar 30, 2021, for the 2030 notes.
Post the closing of the above-mentioned offerings, the company’s outstanding balance of 1.700% senior notes due to expire in 2024 will be €900 million. The outstanding balance for 2.100% senior notes due 2026 and 2.500% senior notes due 2030 will each be €800 million.
Danaher anticipates securing net proceeds of €753.7 million from the notes offerings. The proceeds are net of underwriting discounts and issuance-related costs. The proceeds will be used for satisfying general corporate purposes — including repaying borrowings under the revolving credit facility and commercial papers.
We believe that offerings of senior notes will increase the company’s debts, and, in turn, might inflate its financial obligations and hurt profitability. However, measures to repay borrowings under commercial papers and revolving credit facility will be a relief.
Danaher’s Debt Profile
It is worth mentioning here that the company's long-term debt at the end of the fourth quarter of 2019 stood at $21.5 billion, reflecting an increase of 30.1% from the previous quarter.
In the quarter, the company issued $4 billion worth of senior notes. The net proceeds of the offering were used to fund the acquisition of the BioPharma business — part of General Electric Company’s (GE - Free Report) GE Life Sciences business. Also, Danaher redeemed $875 million worth of senior notes in the fourth quarter.
In March 2020, the company issues €750 million of 1.700% senior notes due to expire in 2024, €500 million of 2.100% senior notes due to expire in 2026 and €500 million of 2.500% senior notes due to expire in 2030.
Zacks Rank, Price Performance and Estimate Trend
With a market capitalization of approximately $94.2 billion, Danaher currently carries a Zacks Rank #4 (Sell). In the past 60 days, the Zacks Consensus Estimate for its earnings has been declined 9.4% to $4.94 for 2020 and 5.9% to $5.85 for 2021.
In the past 30 days, earnings estimates remained stable for both companies.
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Danaher (DHR) Prices Senior Notes Offering Worth Euro 750M
Danaher Corporation (DHR - Free Report) on Apr 3 announced the pricing of reopening of €750 million worth of senior notes. The offering will close on Apr 8, 2020.
It is worth mentioning here that the company’s shares have declined 0.94% on Apr 3, ending the trading session at $135.15.
Inside the Headlines
As noted, the offerings will comprise €150 million of 1.700% senior notes due to expire on Mar 30, 2024; €300 million of 2.100% senior notes due to expire on Sep 30, 2026; and €300 million of 2.500% senior notes due to expire on Mar 30, 2030.
Notes due to expire in 2024 have been priced at 100.298% of the principal amount plus interest (accrued). Moreover, the 2026 notes have been priced at 100.842% of the principal amount plus accrued interest. Also, the notes due 2030 have been offered to the public at 102.166% of the principal amount plus accrued interest.
Interest on the senior notes will be paid out annually. The first interest payment will be made on Mar 30, 2021, for the 2024 notes; on Sep 30, 2020, for the 2026 notes and on Mar 30, 2021, for the 2030 notes.
Post the closing of the above-mentioned offerings, the company’s outstanding balance of 1.700% senior notes due to expire in 2024 will be €900 million. The outstanding balance for 2.100% senior notes due 2026 and 2.500% senior notes due 2030 will each be €800 million.
Danaher anticipates securing net proceeds of €753.7 million from the notes offerings. The proceeds are net of underwriting discounts and issuance-related costs. The proceeds will be used for satisfying general corporate purposes — including repaying borrowings under the revolving credit facility and commercial papers.
We believe that offerings of senior notes will increase the company’s debts, and, in turn, might inflate its financial obligations and hurt profitability. However, measures to repay borrowings under commercial papers and revolving credit facility will be a relief.
Danaher’s Debt Profile
It is worth mentioning here that the company's long-term debt at the end of the fourth quarter of 2019 stood at $21.5 billion, reflecting an increase of 30.1% from the previous quarter.
In the quarter, the company issued $4 billion worth of senior notes. The net proceeds of the offering were used to fund the acquisition of the BioPharma business — part of General Electric Company’s (GE - Free Report) GE Life Sciences business. Also, Danaher redeemed $875 million worth of senior notes in the fourth quarter.
In March 2020, the company issues €750 million of 1.700% senior notes due to expire in 2024, €500 million of 2.100% senior notes due to expire in 2026 and €500 million of 2.500% senior notes due to expire in 2030.
Zacks Rank, Price Performance and Estimate Trend
With a market capitalization of approximately $94.2 billion, Danaher currently carries a Zacks Rank #4 (Sell). In the past 60 days, the Zacks Consensus Estimate for its earnings has been declined 9.4% to $4.94 for 2020 and 5.9% to $5.85 for 2021.
Danaher Corporation Price and Consensus
Danaher Corporation price-consensus-chart | Danaher Corporation Quote
The company’s share price has decreased 13.5% in the past three months compared with the industry’s decline of 37%.
Stocks to Consider
Two better-ranked stocks in the industry are Griffon Corporation (GFF - Free Report) and Hitachi Ltd. (HTHIY - Free Report) . Both the companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 30 days, earnings estimates remained stable for both companies.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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