Cole-Parmer firms $770 million term loan at Libor plus 425 bps

By Sara Rosenberg

New York, Oct. 28 – Cole-Parmer Instrument Co. (Curie Merger Sub LLC) set pricing on its $770 million seven-year first-lien term loan (B2/B) at Libor plus 425 basis points, the high end of the Libor plus 400 bps to 425 bps talk, according to a market source.

Furthermore, the original issue discount on the first-lien term loan was tightened to 99.5 from 99, the source said.

Also, the MFN was changed to 50 bps for life with no carve-outs and applies to all pari ratio debt in the form of U.S. dollar term loans, from 75 bps with a six-month sunset with carve-outs for loans maturing two years outside initial loans, incurred in connection with acquisitions, non-syndicated or non-dollar-denominated.

Asset sales were changed to remove the step-downs and set reinvestment rights at 12+6 months instead of 18+6 months, the source continued.

The first-lien term loan still has a 25 bps step-down upon a first-lien leverage ratio of 0.5x inside of closing date leverage, a 0% Libor floor and 101 soft call protection for six months.

The company’s $1.09 billion equivalent of credit facilities also include a $75 million revolver (B2/B) and a $245 million equivalent eight-year second-lien term loan that has been privately placed.

Jefferies LLC is the left lead arranger on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Monday, the source added.

Proceeds will be used to help fund the acquisition of a majority stake in the company by GTCR.

Closing is expected in the fourth quarter.

Upon closing, Golden Gate Capital and management will retain a significant minority stake in the company.

Cole-Parmer is a Vernon Hills, Ill.-based provider of fluid handling, test & measurement, environmental and biosciences instrumentation and associated consumables.

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