Moody's assigns Avantor notes B2

Moody's Investors Service said it assigned a B2 rating to Avantor Funding, Inc.’s planned senior unsecured notes for $800 million.

There are no changes to Avantor's other ratings including the Ba3 corporate family rating, the Ba3-PD probability of default rating, the Ba1 senior secured rating, the B2 senior unsecured rating and its SGL-1 speculative grade liquidity rating, the agency said.

Avantor will use the proceeds with a recent $900 million term loan add-on primarily to finance the acquisition of Masterflex for $2.9 billion.

“While the acquisition will increase leverage, the recent issuance of roughly $1 billion of new Avantor equity will help limit the increase in leverage. Furthermore, Avantor's enjoys a track record of strong operating performance, including improved profitability and ample cash flow generation. As a result, Moody's expect Avantor to delever such that net debt/EBITDA will decline below four times by the end of 2022,” the agency said in a press release.

The outlook remains stable.

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