Entegris obtains debt financing commitment for CMC Materials acquisition

Entegris Inc. disclosed that it has obtained fully committed debt financing from Morgan Stanley in connection with its planned $6.5 billion acquisition of CMC Materials Inc., which is expected to close in the second half of 2022.

In July, CMC Materials, formerly known as Cabot Microelectronics, increased the size of its revolver to $350 million, from $200 million, and extended the maturity of the facility to July 2026, from November 2023. As of Sept. 30, the company had roughly $928.4 million outstanding under its term loan B-1 due November 2025.

In April, Entegris placed a $400 million offering of 3.625% eight-year senior unsecured notes to redeem notes due 2026.

CMC Materials supplies consumable materials primarily to semiconductor manufacturers. Entegris is a global provider of products and systems used in the semiconductor device fabrication process. Corporate issuer ratings are BB+/Ba1.

*Article was updated at 3:05 p.m. ET on Thursday, Dec. 16, to include information on CMC Material's term loan B.