Danaher spinoff Veralto borrows $1.5 billion five-year revolver

Chicago, Sept. 5 – Veralto Corp. signed for a $1.5 billion five-year revolver on Aug. 31, according to an 8-K filing with the Securities and Exchange Commission.

The facility matures on Aug. 31, 2028, with the possibility of a one-year extension at the request of the borrower, subject to lender consent.

There is an accordion feature for up to $500 million, broken into up to five increases.

Interest will be at SOFR or Euribor plus a margin of 79.5 basis points to 130 bps. There is a 0% floor.

The facility fee on the aggregate commitments, regardless of usage, will be between 8 bps and 20 bps.

All rates will be based on ratings.

Veralto will be required to maintain a consolidated net leverage ratio of not more than 3.75x, unless there is an acquisition of over $100 million in which case the ratio may be increased to 4.25x for four consecutive quarters following that acquisition.

The credit facility will be available to the borrower on the separation date from Danaher Corp.

As previously reported, Danaher is spinning off its existing environmental and applied solutions segment, a transaction that is expected to be completed on Sept. 30.

Veralto will be considered a wholly owned subsidiary of Danaher.

Verlato’s executive offices are currently based in Waltham, Mass.

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