Catalent Pharma launches $180 million equivalent add-on term loan B

By Sara Rosenberg

New York, Nov. 20 – Catalent Pharma Solutions Inc. launched a fungible $180 million equivalent add-on U.S. and euro term loan B due May 19, 2021, according to a market source.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Jefferies Finance LLC and Deutsche Bank Securities Inc. are the bookrunners on the deal.

The add-on is talked at Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 99 to 99½, the source said.

Included in the add-on is 101 soft call protection until May 19, 2015.

The spread, floor and call protection on the add-on match the existing term loan.

Previously, pricing on the existing term loan had been Libor plus 350 bps, but it had stepped down to Libor plus 325 bps when the company brought its net leverage down to less than 4.5 times, the source added.

Proceeds from the add-on will be used to repay existing revolver borrowings and senior unsecured term loan debt.

Commitments are due by noon ET on Monday.

Catalent is a Somerset, N.J.-based provider of advanced technologies and development, manufacturing and packaging services for pharmaceutical, biotechnology and consumer health care companies.

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