Avantor Performance lifts incremental term loan size to $665 million

By Sara Rosenberg

New York, Sept. 16 – Avantor Performance Materials Holdings SA subsidiary Avantor Performance Materials Holdings, Inc. upsized its incremental first-lien term loan due 2022 to $665 million from $400 million, according to a market source.

As before, pricing on the incremental term loan, as well as on a $170 million delayed-draw first-lien term loan due 2022, is Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 99.5, and the debt has 101 soft call protection through June 21, 2017.

The spread, floor and call protection on the new term loans, which will trade as a strip, match 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.

Along with the term loans, the company is getting a $25 million revolver.

Commitments were scheduled to be due at 5 p.m. ET on Friday.

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

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, to fund a future acquisition and, due to the upsizing, to refinance a second-lien term loan and pay a shareholder distribution, 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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