Teledyne Technologies (NYSE: TDY) has finalized all permanent financing to execute its proposed acquisition of imaging sensors developer FLIR Systems (NYSE: FLIR) after closing an offering of five series of notes for an aggregate principal amount of $3 billion.
Teledyne said Tuesday its anticipates the weighted average borrowing cost to be less than 2 percent upon the transaction’s completion.
In early March, Teledyne announced the pricing of notes and expiration of the required waiting period for the proposed acquisition under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
The company also signed a term loan credit agreement worth $1 billion and moved to amend and restate another credit deal valued at $1.15 billion. Both credit agreements will mature on March 4, 2026.
If the acquisition’s closing does not happen on or before Dec. 31 and the date of the merger deal is terminated, Teledyne said it will redeem the notes due 2023, 2024, 2026 and 2031 in whole at a special mandatory price equal to 101 percent of the notes’ aggregate principal amount, plus accrued and unpaid interest.
Teledyne struck a cash-and-stock deal worth $8 billion for FLIR Systems in January. The transaction is expected to close by mid-2021.
