Sotera Health to launch $425 million term loan B on Tuesday

By Sara Rosenberg

New York, Feb. 13 – Sotera Health Co. is scheduled to hold a lender call at 10 a.m. ET on Tuesday to launch a non-fungible $425 million senior secured term loan B due December 2026 (BB-), according to a market source.

JPMorgan Chase Bank is the lead on the deal.

Price talk on the term loan is SOFR plus 375 basis points with a 0.5% floor and an original issue discount of 95.5 to 96, the source said.

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

Commitments are due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used with cash on hand to fund a planned $408 million ethylene oxide litigation settlement in Cook County, Ill., to pay down revolving credit facility borrowings and to further enhance liquidity.

In January, the company announced that it planned to pursue incremental debt financing in the first half of 2023 to fund a significant portion of the $408 million agreement reached by its subsidiary, Sterigenics, to settle the more than 870 ethylene oxide cases pending against it in the Circuit Court of Cook County, Illinois, and U.S. District Court for the Northern District of Illinois.

Closing is expected this quarter.

Sotera is a Broadview Heights, Ohio-based provider of mission-critical end-to-end sterilization solutions and lab testing and advisory services for the health care industry. Sterigenics is a provider of outsourced terminal sterilization and irradiation services for the medical device, pharmaceutical, food safety and advanced applications markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.