Centrient lays out final terms for loan repricing, add-on

Centrient Pharmaceuticals Netherlands BV has confirmed final terms on the refinancing of its existing €355 million term loan B due October 2025 and its €180 million fungible add-on, with pricing set at E+425 with a 0% floor. The offer price for the transaction has been set at par for both existing lenders and new-money commitments, suggesting a yield to maturity of 4.32%.

Final commitments are due today at 3 p.m. U.K. time, via active bookrunners Morgan Stanley and Goldman Sachs.

The deal will carry six months of 101 soft-call protection. A ticking fee means that 0% of the margin is payable for the first 60 days, with 50% payable from days 60-90, and 100% thereafter.

Barclays, HSBC and RBC are joint bookrunners on the deal.

Centrient had originally been looking to add a fungible incremental facility to its debt, with the add-on initially talked at 99-99.5 before being tightened to 99.5-100. Earlier this week, the repricing of the existing facility was added, with lenders offered the option of either an E+425 priced term loan with a 0% floor at 99.75 for new lenders, or par for existing lenders using a cashless roll; or an E+450 margin with a 0% floor at par for both new and existing lenders.

Ratings have been affirmed at B-/B2 (issue and issuer), with a recovery rating of 3. In a ratings action update published Feb. 23, Moody’s downgraded the rating on the company's secured loan and revolver by one notch to B2, and revised the outlook on the corporate rating to negative from stable, citing higher leverage. The outlook from S&P Global Ratings remains stable.

Proceeds from the add-on will be used to fund the acquisition of Indiand contract manufacturing firm Astral SteriTech, which was announced in February. Astral SteriTech produces sterile antibiotic injectable finished dosage forms.

In addition to the term loan add-on, the deal will bring a €10 million increase to the company's revolver, to €85 million.

The outstanding term loan is currently priced at E+475 with a 0% floor. It was agreed in September 2018, backing Bain's buyout of the company.

Centrient Pharmaceuticals, formerly known as DSM Sinochem Pharmaceuticals, is a producer of sustainable, enzymatic antibiotics, statins and anti-fungals.