SHC - Sotera Health Announces Closing of $1.5 Billion Term Loan B and $750 Million Senior Secured Note Financings | Benzinga
CLEVELAND, May 30, 2024 (GLOBE NEWSWIRE) -- Sotera Health Company ("Sotera Health" or the "Company") (NASDAQ:SHC), a leading global provider of mission-critical end-to-end sterilization solutions and lab testing and advisory services for the healthcare industry, today announced that its direct subsidiary has successfully closed a new senior secured Term Loan B facility in an aggregate principal amount of $1.51 billion (the "TLB") as well as an issuance of senior secured notes in an aggregate principal amount of $750.0 million (the "Notes") (collectively, the "Financings"), both of which mature in 2031. The Company used the net proceeds from the Financings, along with cash on hand, to refinance its existing $1.76 billion Term Loan B and $496.3 million Term Loan B facilities.
"We are pleased to announce the successful refinancing of our capital structure with a $1.5 billion Term Loan B and $750M of Senior Secured Notes at terms that are favorable to the Company," said Chairman and Chief Executive Officer, Michael B. Petras, Jr. "The strong market reception for this financing is a testament to the strength of our business. This financing is expected to result in approximately $5 million of interest expense savings for 2024, reducing our interest expense outlook to a range of $165M - $175M."
The TLB was issued in connection with an amendment to the Company's existing First Lien Credit Agreement and will bear interest at a variable rate per annum plus an applicable margin, at the Company's option, of either 3.25% for SOFR-based loans or 2.25% for alternate base rate loans (in each case, subject to a 0% floor), in any case payable in arrears. The TLB is prepayable without premium or penalty at any time six months after the closing date, and includes a 1.00% premium for certain repricing transactions that occur in the first six months after the closing date. The ...