Avantor Performance to launch $595 million in bank debt on Thursday

By Sara Rosenberg

New York, Sept. 7 – Avantor Performance Materials is scheduled to hold a bank meeting at 9:30 a.m. ET in New York on Thursday to launch $595 million in bank debt, according to a market source.

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

The debt consists of a $25 million revolver, a $400 million incremental first-lien term loan due 2023 and a $170 million delayed-draw first-lien term loan due 2023, the source said.

Price talk on the term loans is Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 99.5, the source continued.

The term loans, which will trade as a strip, have 101 soft call protection through June 21, 2017.

The spread, floor and call protection on the new term loans matches the existing first-lien term loan.

Included in the delayed-draw term loan is a ticking fee of the full spread starting on day 31.

Proceeds will be used to fund the merger of Center Valley, Pa.-based Avantor Performance Materials and Carpinteria, Calif.-based NuSil Technology LLC, both portfolio companies of New Mountain Capital LLC, and to fund a future acquisition.

Commitments are due at 5 p.m. ET on Sept. 20, the source added.

Closing on the merger is expected late this month, subject to customary conditions.

The combined company, to be named Avantor, will provide performance materials and solutions for the life sciences and advanced technology markets.

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