Sotera Health prices upsized $500 million incremental term loan at SOFR plus 375 bps at 97

By Paul A. Harris

Portland, Ore., Feb. 17 – Sotera Health Co. priced an upsized $500 million non-fungible senior secured term loan B due December 2026 at SOFR plus 375 basis points and an original issue discount of 97, according to a market source.

The deal size increased from $425 million.

The spread came on top of spread talk. Early price guidance was 95.5 to 96.

The term loan comes with 101 soft call protection for six months.

JPMorgan Chase Bank is the lead on the deal.

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.