Teledyne Technologies has finalised financing for its $US8 Billion acquisition of thermal imaging specialist, FLIR Systems.
Teledyne recently closed an offering of $3 billion investment-grade bonds, including $300 million aggregate principal amount of 0.65 per cent notes due 2023, $450 million aggregate principal amount of 0.95 per cent notes due 2024, $450 million aggregate principal amount of 1.60 per cent notes due 2026, $700 million aggregate principal amount of 2.25 per cent notes due 2028 and $1.1 billion aggregate principal amount of 2.75 per cent notes due 2031.
Previously on March 4, Teledyne entered into a $1 billion term loan credit agreement and amended and restated credit agreement with capacity of $1.15 billion both maturing on March 4, 2026. The company said it intends to use the proceeds from the notes together with the proceeds from the $1 billion term loan and cash on hand to pay the cash portion of the consideration for the FLIR acquisition and refinance certain existing debt.
The transaction, which has been approved by the boards of directors of both companies, is expected to close in the middle of 2021 subject to the receipt of required regulatory approvals, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, approvals of Teledyne and FLIR stockholders and other customary closing conditions.
Teledyne Technologies is a provider of instrumentation, digital imaging products and software, aerospace and defence electronics and engineered systems. The FLIR acquisition adds the world’s foremost thermal imaging solutions to its product list.
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