Avantor greenshoe exercise ups 6.25% convertibles to $1.04 billion

By Angela McDaniels

Tacoma, Wash., May 21 – The underwriters of Avantor Inc.’s three-year $50-par series A mandatory convertible preferred stock exercised their $135 million over-allotment option in full, increasing the size of the issue to $1.04 billion.

As previously reported, the company priced an upsized $900 million of the convertibles on May 17 at the cheap end of talk with a dividend of 6.25% and a threshold appreciation premium of 17.5%.

The bookrunners for the registered offering were Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Securities Inc., Barclays, Jefferies & Co., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Evercore Group LLC, Guggenheim Securities, LLC, Morgan Stanley & Co. LLC, UBS Securities LLC, Cowen and Co., LLC, Citigroup Global Markets Inc., Piper Jaffray & Co. and RBC Capital Markets, LLC.

The initial size of the offering was $500 million with a $75 million greenshoe.

The deal priced concurrently with Avantor’s initial public offering of stock. Including a fully exercised greenshoe, Avantor sold $3.33 billion of stock in the IPO.

The company used $2.63 billion of the proceeds from both offerings to redeem all outstanding shares of its series A preferred stock. Remaining proceeds were used to repay $1.02 billion and $582 million of outstanding debt under its senior secured dollar term loan and senior secured euro term loan, respectively.

Avantor is a Radnor, Pa.-based manufacturer and marketer of materials for the life sciences, pharmaceutical, biomaterial and research/diagnostic markets.

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