By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Sept. 12 – Danaher Corp. spinoff Veralto Corp. priced $2.1 billion of senior notes in three parts on Monday, according to an 8-K filing with the Securities and Exchange Commission.
The notes include $700 million of 5.5% senior notes due 2026 with a spread of 80 basis points to Treasuries; $700 million of 5.35% senior notes due 2028 at Treasuries plus 95 bps; and $700 million of 5.45% senior notes due 2033 at Treasuries plus 120 bps.
The notes due 2026 had talk in the 100 bps area, the notes due 2028 had talk in the 120 bps area and the notes due 2033 had talk in the 150 bps area.
On Tuesday, Veralto priced €500 million of 4.15% senior notes due 2031.
Danaher will guarantee all of the notes until the planned separation of Veralto from Danaher occurs.
The securities are being sold in private placements to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States under Regulation S.
BofA Securities, Inc., Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC are bookrunners for the issue.
Proceeds will be used to make payments to Danaher as partial consideration for the contribution of assets by Danaher to the issuer in connection with its separation from Danaher and to pay related fees and expenses.
Verlato’s executive offices are based in Waltham, Mass.
Issuer: | Veralto Corp.
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Guarantor: | Danaher Corp., guarantor until spinoff is completed
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Amount: | $2.1 billion
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Issue: | Senior notes
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Bookrunners: | BofA Securities, Inc., Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC
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Pricing date: | Sept. 11
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Settlement date: | Sept. 18
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2026 notes
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Amount: | $700 million
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Maturity: | Sept. 18, 2026
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Coupon: | 5.5%
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Spread: | Treasuries plus 80 bps
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Price talk: | Treasuries plus 100 bps area
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2028 notes
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Amount: | $700 million
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Maturity: | Sept. 18, 2028
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Coupon: | 5.35%
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Spread: | Treasuries plus 95 bps
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Price talk: | Treasuries plus 120 bps area
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2033 notes
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Amount: | $700 million
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Maturity: | Sept. 18, 2033
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Coupon: | 5.45%
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Spread: | Treasuries plus 120 bps
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Price talk: | Treasuries plus 150 bps area
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