Entegris and Versum launch credit facilities amendment to lenders

By Sara Rosenberg

New York, Jan. 31 – Entegris Inc. and Versum Materials Inc. held a lender call at 12:30 p.m. ET on Thursday to launch an amendment to their existing credit facilities, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the transaction.

Entegris is looking to amend a $700 million senior secured credit facility, and Versum is looking to amend a $759.21 million senior secured credit facility, the source said.

Earlier this week, the two companies announced that they are merging. Versum stockholders will receive 1.12 shares of Entegris for each existing Versum share. Upon completion of the merger, Entegris stockholders will own 52.5% and Versum stockholders will own 47.5% of the combined company.

Entegris also disclosed in a recent Securities and Exchange Commission filing that it received a commitment from Morgan Stanley for a $987 million incremental term loan to be used to refinance debt at Versum in some circumstances in connection with the merger.

The combined company will have a pro forma enterprise value of about $9 billion, around $3 billion in revenue and roughly $1 billion in adjusted EBITDA on a pro forma basis for calendar year 2018.

Pro forma net leverage will be about 1.1 times.

Closing is expected in the second half of 2019, subject to customary conditions, including receipt of U.S. and international regulatory approvals, and approval by the stockholders of each company.

Entegris is a Billerica, Mass.-based provider of specialty chemicals and advanced materials solutions for the microelectronics industry. Versum is a Tempe, Ariz.-based specialty materials supplier to the semiconductor industry. The combined company will retain the Entegris name.

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