Moody’s affirms Avantor on loan upsizing

Moody's Investors Service said it affirmed the B1 corporate family rating and the B1-PD probability of default rating of Avantor Performance Materials Holdings SA.

The agency also affirmed the first-lien senior secured term loan at B1 and said it will withdraw the B3 rating on the second-lien senior secured term loan when the loans are repaid, expected Sept. 30, 2016, all issued by Avantor's subsidiary Avantor Performance Materials Holdings, Inc.

These actions follow the company's announcement that it will upsize the recent $570 million first-lien term loan financing by $265 million and use the expanded proceeds to repay roughly $165 million outstanding under the second-lien term loan and to pay a dividend up to $140 million to New Mountain, Avantor's private equity owner.

The outlook is stable.

"We expect leverage, in the absence of bolt-on acquisitions, to decline over the next 12 months, and to be maintained between 4.0 and 5.0 times overtime," Joseph Princiotta, Moody’s vice president, senior credit officer and lead analyst for Avantor, said in a news release.

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