By Abigail W. Adams
Portland, Ore., Oct. 30 – Avantor Funding, Inc. (B1/BB-/BB-) priced an upsized €650 million, from €550 million, offering of five-year senior first-lien notes at par to yield 2 5/8%, according to a market source.
Pricing came on the tight end of talk for a yield in the 2¾% area.
Left active bookrunner Goldman Sachs & Co. LLC will bill and deliver. Citigroup Global Markets Inc. is a joint active bookrunner for the Rule 144A and Regulation S offering.
Barclays, J.P. Morgan Securities LLC and BofA Securities Inc. are joint bookrunners.
The notes become callable after two years at par plus 50% of the coupon.
The deal was upsized with proceeds shifted from the concurrent term loan, which was downsized to $1.175 billion from $1.35 billion.
The A/R facility was also increased by $57 million.
The Radnor, Pa.-based company plans to use the proceeds, along with the $1.175 billion term loan, borrowings under its existing accounts receivable facility and cash on its balance sheet, to redeem all of its euro-denominated 4¾% notes due 2024 and dollar-denominated 6% notes due 2024.
Avantor supplies mission critical products and services to customers in the life sciences, advanced technologies and applied materials industries.
| Issuer: | Avantor Funding Inc.
|
| Amount: | €650 million
|
| Maturity: | Nov. 1, 2025
|
| Securities: | Senior first-lien notes
|
| Left bookrunner: | Goldman Sachs & Co. LLC
|
| Joint bookrunners: | Citigroup Global Markets Inc., Barclays, J.P. Morgan Securities LLC and BofA Securities Inc.
|
| Co-managers: | PNC Capital Markets LLC, HSBC Securities (USA) Inc. and Jefferies LLC
|
| Coupon: | 2 5/8%
|
| Price: | Par
|
| Yield: | 2 5/8%
|
| Spread: | 345 bps
|
| First call: | Nov. 1, 2022 at 101.313
|
| Trade date: | Oct. 30
|
| Settlement date: | Nov. 6
|
| Ratings: | Moody's: B1
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| S&P: BB-
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 2¾% area
|
| Marketing: | Investor call
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