Avantor sets $670 million first-lien term loan at Libor plus 500 bps

By Sara Rosenberg

New York, June 16 – Avantor Performance Materials firmed pricing on its $670 million first-lien covenant-light term loan (B1/B) at Libor plus 500 basis points, the wide end of the Libor plus 475 bps to 500 bps talk, according to a market source.

In addition, the 101 soft call protection on the first-lien term loan was extended to one year from six months, the source said.

Also, the maturity on the first-lien term loan was shortened to six years from seven years and the maturity on the second-lien term loan was shortened to seven years from eight years.

The first-lien term loan still has a 1% Libor floor and an original issue discount of 99.

Pricing on the company’s $165 million second-lien covenant-light term loan (Caa1/CCC+) was unchanged at Libor plus 950 bps with a 1% Libor floor and a discount of 98, and the debt still has call protection of 103 in year one, 102 in year two and 101 in year three.

The company’s $885 million credit facility also includes a $50 million revolver (B1/B).

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and KeyBanc Capital Markets LLC are the leads on the deal.

Allocations are expected on Friday, the source added.

Proceeds will be used to refinance existing debt and fund a shareholder dividend.

Avantor is a Center Valley, Pa.-based life sciences company focused on the development of specialty performance materials.

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