In a major leveraged finance transaction, Milbank, Tweed, Hadley and McCloy has represented the financial institutions providing approximately $1.6 billion in debt financing to Sterigenics International LLC, a global leader in outsourced contract sterilization services, gamma technologies and medical isotopes.
The debt package accompanies an equity investment in Sterigenics by Warburg Pincus, a leading global private equity investment institution, alongside the company’s existing owner, private equity firm GTCR, raising the total value of the transaction to approximately $2.4 billion.
Milbank advised JP Morgan, Jefferies, Barclays, and RBC Capital Markets as joint lead arrangers and initial purchasers of the debt financing, which includes a seven-year $1.05 billion senior-secured term loan, a five-year $172.5 million senior secured revolving credit facility and $450 million in 6.5% high-yield Senior Notes due 2023.
Leveraged Finance partner Michael Bellucci and associates Todd Koretzky, Parker Zhou, Brett Pallin and Allen Mintz advised the joint lead arrangers on the approximately $1.2 billion senior secured credit facilities.
For the high-yield offering, Milbank Securities partners Rod Miller and Paul Denaro led the initial purchasers’ deal team; supported by Securities special counsel Ben Garcia, and associates Cora Fanning and Efua Feldman.
Proceeds of the debt financing were used to redeem Sterigenics’ outstanding 8% notes and 12.75% notes, refinance the outstanding indebtedness under its existing revolver and term loans, to pay cash acquisition consideration and for other permitted purposes.
Mr. Bellucci said, “Our leveraged finance and securities teams worked seamlessly to put together a strong, two-part debt package as part of Sterigenics’ recap. This is one of the larger deals of its kind for a contract sterilization company. As the sector continues to draw interest from private equity investors, we hope to play a key role in future transactions.”
Mr. Denaro added, “We are delighted to participate in this large recapitalization, which reinforces Sterigenics’ balance sheet and positions the company for a new chapter of growth and expansion under its new ownership group led by Warburg Pincus.”
About Milbank
Milbank, Tweed, Hadley & McCloy LLP is a leading international law firm that has been providing innovative legal solutions to clients throughout the world for nearly 150 years. Milbank is headquartered in New York and has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Seoul, Singapore, Tokyo and Washington, DC.
The firm’s lawyers provide a full range of legal services to the world’s leading commercial, financial and industrial enterprises, as well as to institutions, individuals and governments. Milbank’s lawyers meet the needs of its clients by offering a highly integrated and collaborative range of services across key practice groups throughout its global network. Milbank’s integrated practice is underpinned by its attorneys’ acknowledged technical excellence, sectorial experience and a strong tradition of innovation and client service.
