BILLERICA, Mass., Dec. 12, 2019 /PRNewswire/ -- Bruker
Corporation (Nasdaq: BRKR) today announced that it has completed
certain debt financing actions intended to enhance its financial
flexibility and fund corporate strategic objectives. The actions
include: (1) a new 5 year revolving credit facility with expanded
capacity to borrow up to $600
million, (2) a new 7 year term loan in the aggregate
principal amount of $300 million,
together with cross-currency and interest rate swap arrangements
which fix rates to Euro and Swiss Franc rates, (3) a new private
placement of 10 year senior notes in the aggregate principal amount
of 297 million Swiss Franc, and (4)
new cross-currency swap arrangements on existing 2012 private
placement notes of $205 million which
fix rates to Euro and Swiss Franc rates. This debt refinancing
capitalizes on the low interest rate environment in domestic and
European capital markets, effectively fixes interest rates on
approximately 60% of the Company's total borrowing capacity and
extends debt maturities out to 2026 and 2029.
Specifically, the Company has entered into the following
arrangements:
- Five-year revolving credit facility of up to $600 million (the "2019 Revolving Credit
Facility"). The 2019 Revolving Credit Facility replaces the
Company's $500 million five-year
revolving credit facility established in October 2015, which has been terminated;
- Seven-year term loan in the aggregate principal amount of
$300 million (the "Term
Loan") on terms substantially similar to the terms of the
2019 Revolving Credit Facility; Floating interest rates under the
Term Loan were simultaneously fixed through cross-currency and
interest rate swap arrangements into fixed Euro and Swiss Franc
rates carrying an average effective interest rate of 0.94%;
- Private placement of 297 million
Swiss Franc aggregate principal amount of 1.01% senior notes
due December 11, 2029 ("the
Notes"). Interest on the Notes is payable semi-annually. The
Notes 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.
- Cross-currency swaps were also executed on the Company's
existing 2012 private placement notes of $105 million and $100
million carrying interest rates of 4.31% and 4.46%
respectively, resulting in an average effective interest rate of
2.25% on these instruments.
Bruker intends to use proceeds from this financing for general
corporate purposes, including the repayment of outstanding
borrowings under the Company's prior 2015 revolving credit
facility, and to support corporate strategic objectives.
Including the effect of swap arrangements and expected
reinvestment, the net impact of these financing transactions is
expected to be accretive to EPS in 2020 and beyond.
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 11, 2019.
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 and the
expected impact of the financing arrangements on EPS. 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, 2018. We expressly
disclaim any intent or obligation to update these forward-looking
statements other than as required by law.
Contact:
Miroslava
Minkova
Director, Investor Relations & Corporate Development
Bruker Corporation
T: +1 (978) 663 – 3660, ext. 1479
E:
Investor.Relations@bruker.com
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SOURCE Bruker Corporation