Teledyne Technologies Incorporated announced that it has completed all permanent financing for the pending acquisition of FLIR Systems, Inc.. Given the permanent financing, together with certain continuing debt, Teledyne expects its weighted average borrowing cost to be less than two percent upon closing the acquisition.
Today Teledyne closed an offering of $3.0 billion investment-grade bonds (the "Notes"), including $300 million aggregate principal amount of 0.65% Notes due 2023, $450 million aggregate principal amount of 0.95% Notes due 2024, $450 million aggregate principal amount of 1.60% Notes due 2026, $700 million aggregate principal amount of 2.25% Notes due 2028 and $1.1 billion aggregate principal amount of 2.75% Notes due 2031.
Previously on March 4, Teledyne entered into a $1.00 billion Term Loan Credit Agreement and Amended and Restated Credit Agreement with capacity of $1.15 billion both maturing on March 4, 2026. Teledyne intends to use the proceeds from the Notes together with the proceeds from the $1.00 billion Term Loan and cash on hand to pay the cash portion of the consideration for the FLIR acquisition and refinance certain existing debt.
Notifications pursuant to the Hart-Scott-Rodino ("HSR") Antitrust Improvements Act of 1976 were filed on January 29, 2021, and termination of the waiting period occurred on March 1, 2021. Subject to the receipt of additional required regulatory approvals, the transaction is expected to close in the second quarter of 2021.
If the closing of the FLIR acquisition does not occur on or before the earlier of (i) December 31, 2021, and (ii) the date the Merger Agreement, including any amendment thereof, is terminated, according to its terms, Teledyne will redeem the 2023 Notes, the 2024 Notes, the 2026 Notes, and the 2031 Notes in whole at a special mandatory redemption price equal to 101% of the aggregate principal amount of such Notes, plus accrued and unpaid interest on the principal amount of such Notes to, but excluding, the special mandatory redemption date.
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|Teledyne Technologies Incorporated.|
|FLIR Systems, Inc.||FLIR Systems, Night Vision Equipment, Cameras (Airborne), Thermal Imaging Equipment, Enhanced Vision Systems (EVS)|