Waters Corporation priced a $3.5 billion senior note offering on March 18, 2026 through its subsidiary Augusta SpinCo. The notes are fully guaranteed by Waters and its subsidiaries and are expected to close on or about March 23, 2026.
The net proceeds from the offering, combined with cash on hand, will be used to repay a $3.5 billion delayed‑draw term loan that Augusta incurred in February 2026, thereby consolidating the company’s debt profile.
The notes carry coupon rates ranging from 4.321% to 5.245% and have maturities that span from 2027 to 2036. The offering is being made under an effective shelf registration statement on Form S‑3ASR, which was filed on March 16, 2026.
This refinancing follows Waters’ completion of the Reverse Morris Trust merger with Becton, Dickinson and Company’s Biosciences and Diagnostic Solutions business on February 9, 2026. The acquisition increased the company’s leverage to 2.8×, above its target of 2×, prompting the debt restructuring to bring leverage closer to the desired level while extending maturities and potentially reducing interest costs.
The transaction improves Waters’ liquidity position and extends the maturity profile of its debt. With a current ratio of 1.73 and a debt‑to‑equity ratio of 0.6, the company maintains a moderate debt load and a BBB rating with a stable outlook from S&P Global Ratings, underscoring the strategic intent to support ongoing research and development and future growth initiatives.
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