September 5, 2017 / 4:15 PM / 3 months ago

LPC-VWR launches US$7.75bn buyout financing

LONDON, Sept 5 (Reuters) - A jumbo US$7.75bn-equivalent buyout financing backing US life sciences company Avantor’s take-private of lab supplies company VWR Corp has launched for syndication, banking sources said.

Underwriting banks Goldman Sachs, Barclays and Jefferies are leading the loan and bond financing that has been hotly anticipated by investors eager to put a meaningful amount of money to work. JP Morgan joined the deal prior to launch.

The loan comprises a US$2.4bn first lien term loan and a €500m first lien term loan, as well as a US$250m revolving credit facility.

The euro loan is expected to pay around 350bp over Euribor, with a 0% floor, the sources said.

The loan will be shown to investors in New York on September 7 and in London next week.

The loans launch in conjunction with two senior secured notes -- a US$1.4bn 7NC3 and a €500m 7NC3, as well as a US$2.25bn, 8NC3 unsecured note.

The European bond roadshow begins on September 11, followed by a US roadshow beginning on September 14, with pricing thereafter.

Avantor, which is owned by New Mountain Capital, said that it would buy VWR Corp for about US$4.38bn on May 5.

The merger will create a global laboratory equipment giant supplying healthcare and technology industries with everything from beakers to microscopes. (Editing by Alasdair Reilly)

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