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Avantor modifies U.S. and euro term loan sizes, issue price talk
By Sara Rosenberg
New York, Sept. 19 – Avantor downsized its U.S. seven-year first-lien term loan to $1,802,000,000 from $2,401,000,000 and upsized its euro seven-year first-lien term loan to €1 billion from €500 million, according to a market source.
Also, original issue discount talk on both term loans was revised to a range of 98 to 98.5 from 99 and the 101 soft call protection on the loans was extended to one year from six months, the source said.
Pricing on the U.S. term loan remained at Libor plus 400 basis points with a 1% Libor floor, and pricing on the euro term loan is still Euribor plus 425 bps with a 0% floor.
The company’s credit facilities (B2/B/BB) also include a $250 million revolver.
Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC and Jefferies LLC are the leads on the debt.
Commitments are due at noon ET on Wednesday, the source added.
Proceeds will be used to help fund the acquisition of VWR International LLC for $33.25 in cash per share, reflecting an enterprise value of about $6.4 billion, and fund a distribution to equity holders.
Other funds for the transaction will come from $1,401,000,000 senior secured notes, €500 million senior secured notes, $2.25 billion senior unsecured notes, preferred equity financing and cash on hand.
Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.
Following the closing, New Mountain Capital will be the lead shareholder of the combined company.
Avantor is a Center Valley, Pa.-based supplier of ultra-high-purity materials for the life sciences and advanced technology industries. VWR is a Radnor, Pa.-based provider of product, supply chain, and service solutions to laboratory and production customers.
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