By Taylor Fox
New York, March 24 – Steris Irish FinCo Unlimited Co. priced $1.35 billion in two tranches of senior notes due 2031 and 2051 (Baa2/BBB-/BBB) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The issuer sold $675 million of 2.7% 10-year notes at 99.897 to yield 2.712%, or 110 basis points over Treasuries.
A second $675 million tranche of 30-year notes priced with a coupon of 3.75% at 99.52 to yield 3.777%, or 145 bps over Treasuries.
J.P. Morgan Securities LLC, BofA Securities Inc., Citigroup Global Markets Inc. and PNC Capital Markets LLC are joint bookrunners.
The callable notes are guaranteed by Steris plc, Steris Corp. and Steris Ltd.
As previously reported, the proceeds of the notes, together with borrowings under the companies’ credit facilities, will be used to fund the cash consideration of its acquisition of Cantel Medical Corp.
Steris plc and certain affiliates entered into an agreement and plan of merger with Cantel on Jan. 12. The plan involves a series of mergers whereby Cantel and its subsidiaries will become indirect wholly owned subsidiaries of Steris.
On Tuesday, Steris announced that it had obtained $2.55 billion of term loans and a revolver.
The notes offering is not conditioned upon completion of the acquisition. However, if the acquisition is not completed by April 12, 2022, one series of notes will be subject to a special mandatory redemption.
Steris is a Mentor, Ohio-based maker of contamination control and surgical support products.
| Issuer: | Steris Irish FinCo Unlimited Co.
|
| Guarantors: | Steris plc, Steris Corp. and Steris Ltd.
|
| Amount: | $1.35 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Citigroup Global Markets Inc. and PNC Capital Markets LLC
|
| Senior co-managers: | Santander Investment Securities Inc. and SMBC Nikko Securities America, Inc.
|
| Co-managers: | U.S. Bancorp Investments, Inc., DNB Markets, Inc., KeyBanc Capital Markets Inc., HSBC Securities (USA) Inc., Siebert Williams Shank & Co., LLC and Academy Securities, Inc.
|
| Trade date: | March 24
|
| Settlement date: | April 1
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB
|
|
|
| 2031 notes
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| Amount: | $675 million
|
| Maturity: | March 15, 2031
|
| Coupon: | 2.7%
|
| Price: | 99.897
|
| Yield: | 2.712%
|
| Spread: | Treasuries plus 110 bps
|
| Call features: | Make-whole call before Dec. 15, 2030 at Treasuries plus 20 bps; thereafter at par
|
|
|
| 2051 notes
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| Amount: | $675 million
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| Maturity: | March 15, 2051
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| Coupon: | 3.75%
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| Price: | 99.52
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| Yield: | 3.777%
|
| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call before Sept. 15, 2041 at Treasuries plus 25 bps; thereafter at par
|
|
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