Avantor launches $900 million incremental term loan B at 99.5 OID

By Sara Rosenberg

New York, Oct. 12 – Avantor Inc. launched on Tuesday its fungible $900 million incremental first-lien term loan B-5 due November 2027 with original issue discount talk of 99.5, according to a market source.

Pricing on the incremental term loan is Libor plus 225 basis points with a 0.5% Libor floor, in line with existing term loan B-5 pricing.

The incremental term loan has 101 soft call protection for six months, the source said.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., BofA Securities Inc., Barclays, PNC Bank, Wells Fargo Securities LLC and HSBC Securities (USA) Inc. are the lead arrangers on the deal.

Commitments are due at 10 a.m. ET on Oct. 19, the source added.

Proceeds will be used to help fund the acquisition of the Masterflex bioprocessing business and related assets of Antylia Scientific for $2.9 billion.

Other funds for the transaction are expected to come from $800 million of unsecured debt and a common stock offering.

Closing is expected in the fourth quarter, subject to customary conditions, including receipt of applicable regulatory approvals.

Avantor is a Radnor, Pa.-based provider of mission-critical products and services to customers in the life sciences and advanced technologies & applied materials industries. Masterflex is a Vernon Hills, Ill.-based manufacturer of peristaltic pumps and aseptic single-use fluid transfer technologies.

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