ConvaTec finalizes terms on $1.37 billion five-year term loan tranches

By Paul A. Harris

Portland, Ore., Oct. 18 – ConvaTec Healthcare Inc. set final terms on its $1.37 billion equivalent of five-year term loan A tranches (Ba3/BB), according to a market source.

The $770 million and €546 million tranches are priced at 225 basis points spreads to Libor and Euribor, respectively.

Neither tranche has a Libor/Euribor floor.

Both are priced at 99.5.

Closing is set for late October to early November.

The company’s $2 billion-equivalent credit facility also includes a $430 million Libor plus 250 bps seven-year senior secured term loan B and a $200 million-equivalent revolver.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, UBS Investment Bank, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are the leads.

Proceeds will be used to help refinance existing debt.

The company also plans to use proceeds from an initial public offering of shares for the refinancing.

ConvaTec is a Luxembourg-based medical products and technologies company.

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