Centrient tightens price talk for €180M term loan add-on

Centrient Pharmaceuticals Netherlands BV has revised price guidance on its €180 million fungible term loan add-on to E+475 with a 0% floor offered at 99.5-100. Replies remain due on Feb. 25, via active bookrunners Morgan Stanley and Goldman Sachs.

Revised guidance suggests a yield of 4.84%-4.98% to the October 2025 maturity, and compares with offer price talk given at launch of 99-99.5. The loan comes with a margin ratchet and increases a loan put in place in September 2018 that backed Bain’s buyout of the firm (then DSM Sinochem Pharmaceuticals). Barclays, HSBC and RBC are joint bookrunners on the deal.

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 firm'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 will be used to fund the acquisition of India-based contract manufacturing firm Astral SteriTech, which was announced earlier 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 firm’s revolver to €85 million.

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