Catalent, a global contract development and manufacturing organization, has completed a refinancing transaction to support continued growth and investments in its business. The refinancing includes a new $4.1 billion equivalent seven-year Term Loan B facility and a $600 million revolving credit facility, replacing the company’s existing Term Loan B. The refinancing is expected to reduce Catalent’s annual interest expense by approximately $100 million.
Catalent’s new $600 million revolving credit facility is supported by a syndicate of 10 global institutional banks, broadening the company’s banking relationships and strengthening access to capital. Following completion of the transaction, Catalent has approximately $1.1 billion of available liquidity, including cash on hand and access to its revolving credit facility.
The debt refinancing was led by JP Morgan and Morgan Stanley. Catalent’s debt received ratings of B1 from Moody’s and B+ from S&P, both with stable outlooks. Catalent provides services to pharma, biotech, and consumer health customers across nearly 40 global sites, supplying billions of doses of treatments for patients annually.
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“We are extremely pleased with the outcome of our debt refinancing and the strong market demand for the transaction. The transaction significantly improves our financial profile by reducing our borrowing costs, strengthening our liquidity position and providing additional flexibility to support our strategic priorities and long-term growth.”
Matti Masanovich, Senior Vice President and Chief Financial Officer, Catalent
“This transaction is another example of the progress Catalent continues to make as we build a stronger company for the future. The improved capital structure gives us even greater ability to invest in our people, capabilities, network and customer partnerships. Most importantly, it supports our mission to develop, manufacture and supply products that help people live better and healthier lives.”
Alessandro Maselli, President and Chief Executive Officer, Catalent
