Avantor Performance sets first- and second-lien talk with launch

By Sara Rosenberg

New York, Feb. 21 – Avantor Performance Materials Holdings, Inc. released price talk on its $1,425,000,000 seven-year covenant-light first-lien term loan and $380 million eight-year covenant-light second-lien term loan in connection with its bank meeting on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 425 basis points with a 1% Libor floor, an original issue discount of 99.75 on new money and a par issue price on existing, the source said.

Price talk on the second-lien term loan is Libor plus 825 bps with a 1% Libor floor and a discount of 98.5.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $1.88 billion credit facility also includes a $75 million five-year revolver.

Jefferies Finance LLC is the lead on the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

With this transaction, existing first-lien term loan lenders are being paid out at a premium of 101.

Commitments are due by end of day on March 7, the source added.

Avantor is a Center Valley, Pa.-based provider of performance materials and solutions for the life sciences and advanced technology markets.

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