Thermo Fisher offering benchmark bonds for One Lambda purchase

Thermo Fisher Scientific Inc., the world’s second-largest maker of health-care equipment, is offering notes in two parts to help fund its $925 million acquisition of One Lambda Inc.

The scientific instruments supplier may sell 5.5- and 10.5- year debt as soon as Wednesday, according to a person familiar with the transaction. The offering will be of benchmark size, typically at least $500 million.

The company last sold bonds in August 2011, issuing $1 billion of 2.25 percent, five-year debentures to yield 115 basis points more than similar-maturity Treasuries and $1.1 billion of 3.6 percent, 10-year debt at a relative yield of 130 basis points, according to data compiled by Bloomberg.


The 10-year bonds traded at 106.4 cents on the dollar to yield 2.8 percent on Aug. 10, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Thermo Fisher announced last month that it will acquire Canoga Park, California-based One Lambda, whose technology determines what human leukocyte antigens are present in tissues, a process needed for successful transplants and determining paternity.

The 10.5 year securities will be redeemed at 101 cents on the dollar if the acquisition fails to close by Dec. 31, said the person, who asked not to be identified because the terms are private.

The acquisition is the seventh announced by Thermo Fisher since May 2011, according to data compiled by Bloomberg. The company, which has spent at least $6.8 billion on 27 takeovers in the past five years, will keep seeking purchases as laboratory budgets rise, Chief Executive Officer Marc Casper said.

The new bonds may be rated Baa1, the third-lowest level of investment grade, by Moody’s Investors Service, the person said. Goldman Sachs Group Inc., JPMorgan Chase & Co. and Royal Bank of Scotland Plc are managing the sale for the Waltham, Massachusetts-based company.


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