Patheon lifts $1.14 billion term loan pricing to Libor plus 325 bps

By Sara Rosenberg

New York, April 3 – Patheon (Delta Dutch Newco BV) increased pricing on its $1,136,000,000 covenant-light term loan (B2/B) due April 2024 to Libor plus 325 basis points from Libor plus 275 bps and added a 25 bps step-down upon a B2 rating with stable outlook, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

The company is also getting a €464 million covenant-light term loan (B2/B) due April 2024 priced at Euribor plus 300 bps with a 1% floor and a discount of 99.75.

The euro term loan has 101 soft call protection for six months as well.

Both term loans have a springing maturity inside the company’s senior notes.

Corporate ratings for the company are B3/B.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to refinance an existing U.S. term loan priced at Libor plus 325 bps with a 1% Libor floor and an existing euro term loan priced at Euribor plus 350 bps with a 1% floor, and extend their maturities from 2021.

Patheon is a Durham, N.C.-based provider of outsourced pharmaceutical development and manufacturing services.

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