LONDON May 16 A US$7.75bn-equivalent debt
financing backing US life sciences company Avantor’s
take-private of lab supplies company VWR Corp will offer
at least €1bn to European investors, banking sources said.
Avantor, owned by New Mountain Capital, announced on 5 May
it would buy VWR Corp for about US$4.38bn.
Goldman Sachs, Barclays and Jefferies have underwritten the
debt and are expected to be joined by a number of other banks on
the financing, which comprises a US$5bn senior secured
first-lien term loan; a US$2.25bn senior unsecured bridge
facility; and a US$500m revolving credit facility.
Around 15%-20% of the financing will be denominated in euros
in a move that is expected to please European investors, hungry
for new paper.
The financing is expected to be shown to investors in a
global road show and syndicated across leveraged loans and
high-yield bonds, with the final split dependant on where the
demand is and what market provides the most attractive borrowing
terms, the sources said.
VWR and Avantor were not immediately available to comment.
Avantor entered into a definitive agreement to acquire VWR
for US$33.25 per share in cash, representing an enterprise value
The merger will create a global lab equipment giant
supplying everything from beakers to microscopes to the
healthcare and technology industries. The deal combines
Avantor's strength in manufacturing and its presence in emerging
markets with VWR's distribution network in the Americas and
Europe, the companies said.
Avantor, formed in August 2010 when New Mountain Capital
purchased the business from Covidien Inc, manufactures materials
and chemicals for the biopharma industry.
VWR, a company that traces its roots to the California Gold
Rush in the 1850s, was bought by Madison Dearborn Partners in
2007 and went public in October 2014.
(Editing by Christopher Mangham)