DANAHER CORP /DE/ 8-K

What Happened

• Danaher Corporation announced it entered into a Credit Agreement dated April 16, 2026, establishing a 364‑day revolving credit facility with Bank of America, N.A. as Administrative Agent and a syndicate of lenders. The facility’s Scheduled Termination Date is April 15, 2027. Danaher may convert outstanding loans on that date into one‑year term loans for a fee of 0.50% of the principal (subject to conditions). Danaher says it will use the facility to support its U.S. dollar commercial paper program and for general corporate purposes.

Key Details

• Credit Agreement date: April 16, 2026; Scheduled Termination Date: April 15, 2027.
• Interest rates: Term SOFR loans = Term SOFR + 58.5–108.5 bps (tiered by Danaher’s long‑term debt rating); Base Rate loans = highest of (Fed funds + 0.5%, bank prime, 1‑month Term SOFR + 1%, or 1.0%) + 0–8.5 bps.
• Fees and costs: annual facility fee of 4.0 basis points on aggregate commitments; 0.50% fee to convert outstanding loans into one‑year term loans at scheduled maturity (if elected).
• Covenants and structure: requires a Consolidated Leverage Ratio ≤ 0.65 to 1.00; borrowings are unsecured and prepayable at Danaher’s option; Danaher unconditionally guarantees obligations of any subsidiary borrower; customary events of default and lender remedies apply.

Why It Matters

• This facility provides short‑term liquidity and a backstop for Danaher’s commercial paper program, helping manage cash needs and short‑term funding flexibility.
• The leverage covenant and interest margin tiers tie borrowing costs and capacity to Danaher’s credit rating and leverage level—important for investors monitoring balance‑sheet flexibility and cost of borrowing.
• Because the facility is unsecured and includes typical default and change‑of‑control provisions, adverse events could accelerate repayment obligations; the ability to convert to a one‑year term loan gives limited optional extension flexibility (for a fee and conditions).