Sotera Health increases term loan B amount to $500 million

By Sara Rosenberg

New York, Feb. 14 – Sotera Health Co. upsized its non-fungible senior secured term loan B due December 2026 to $500 million from $425 million, according to a market source.

Talk on the term loan remained at SOFR plus 375 basis points with a 0.5% floor, an original issue discount of 95.5 to 96 and 101 soft call protection for six months.

JPMorgan Chase Bank is the lead on the deal.

Commitments are due at 5 p.m. ET on Wednesday, accelerated from 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.

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