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Commitments due Friday on Avantor $2.25 billion bridge loan backing VWR acquisition
By Paul A. Harris
Portland, Ore., June 29 – Commitments for Avantor’s $2.25 billion senior unsecured bridge loan are due on Friday, according to a buyside source.
The initial interest rate is 8¾%, the source added.
Goldman Sachs & Co. is leading the syndication effort.
The bridge financing is being put in place as part of an effort to help fund the acquisition of VWR International LLC.
As reported, Avantor intends to get up to $5.5 billion in senior secured credit facilities.
Bonds will also be part of the capital structure.
The credit facilities include $5 billion in U.S. and euro first-lien term loans and a $500 million revolver, which may be reduced by the amount of commitments under the company’s receivables securitization facility.
Goldman Sachs, Barclays and Jefferies LLC are the leads on the debt.
Under the agreement, VWR is being bought for $33.25 in cash per share, reflecting an enterprise value of about $6.4 billion.
Closing is expected in the third quarter, subject to the expiration of a “go-shop” period, the expiration or termination of the applicable waiting period under Hart-Scott-Rodino Antitrust Improvements Act and European Commission approval, obtaining any required clearance, consent or approval under applicable foreign antitrust laws, VWR shareholder approval, and other customary conditions.
Following the closing, New Mountain Capital will be the lead shareholder of the combined company.
Avantor is a Center Valley, Pa.-based supplier of ultra-high-purity materials for the life sciences and advanced technology industries. VWR is a Radnor, Pa.-based provider of product, supply chain, and service solutions to laboratory and production customers.
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