By Paul A. Harris
Portland, Ore., Oct. 19 – Avantor Funding, Inc. priced an $800 million issue of eight-year senior notes (B2/BB-/BB) at par to yield 3 7/8% in a Tuesday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 4% area. Initial guidance was in the low 4% area.
The deal was a blowout, three-times oversubscribed at price talk, a trader said.
Citigroup Global Markets Inc. was the left bookrunner. Joint bookrunners were Goldman Sachs & Co. LLC, BofA Securities Inc., Barclays and PNC Capital Markets LLC.
The Radnor Township, Pa.-based chemical company plans to use the proceeds plus a $900 million term loan to partially fund its acquisition of Antylia Scientific’s Masterflex bioproduction business.
They feature a mandatory par call if the acquisition is not consummated.
Issuer: | Avantor Funding, Inc.
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Amount: | $800 million
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Maturity: | Nov. 1, 2029
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Securities: | Senior notes
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Left bookrunner: | Citigroup Global Markets Inc.
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Joint bookrunners: | Goldman Sachs & Co. LLC, BofA Securities Inc., Barclays and PNC Capital Markets LLC
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Co-managers: | Wells Fargo Securities LLC and HSBC Securities (USA) Inc.
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Coupon: | 3 7/8%
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Price: | Par
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Yield: | 3 7/8%
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Spread: | 242 bps
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First call: | Nov. 1, 2024 at 101.938
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Trade date: | Oct. 19
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Settlement date: | Oct. 26
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Ratings: | Moody's: B2
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| S&P: BB-
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| Fitch: BB
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 4% area
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Marketing: | Drive-by
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