Commentary & Deal Flow

Price talk: 7NC3: 5.75-6.00%

Upsized from €500m to €650m (min); US$ TLB dropped, total size across EUR TLB and US$ sr sec notes remains EUR1.380bn equuivalent.
IPTs: 7NC2: 6-6.25%

• Issuer: LSF12 Pillar Investments (US), Inc (Capsugel)
• Ticker: LSFPIL
• Business: A leading global manufacturer of hard empty capsules. HQ: Basel, Switzerland
• Issue Ratings: B1/B+ (stable/stable) (Moody's/S&P)
• Instrument: Senior Secured Notes
• Size: Minimum €650m
• Format: 144A/Reg S
• Guidance: 5.75-6.00%
• Tenor: 7 year
• Call Protection: 7NC3 (50%, Par) (from NC2-3). MWC at B+50bp. Equity claw: 3y 40%. Special call: 10% per year for the first 3 years at 103.
• Use of Proceeds: Along with proceeds from equity contribution, and a EUR650m (up from EUR500m minimum) term loan B (US$500m minimum TLB dropped) (total loan and bond deal size approx EUR1.580bn (approx CHF1.38bn equivalent)), to fund the CHF2bn purchase price for the acquisition of a 60% interest in Capsugel by Lone Star from Lonza Group AG (which will retain a 40% minority interest) and provide for cash overfunding to the balance sheet.
• Joint Global Coordinators and Physical Bookrunners: GS (B&D), Jefferies, BNP, and UBS
• Joint Bookrunners: BBVA, ING, IMI - Intesa Sanpaolo, RBI, SocGen, UniCredit, and Standard Chartered
• Listing: ISE
• Governing Law: NY Law
• Denominations: €100k x €1k
• Equity Sponsor: Lone Star
• Equity Contribution: CHF823m, including Lonza's rollover equity.
• Roadshow (virtual meetings): Started 27-Apr-26
• Global Investor Call: 15:00 UKT / 10:00 ET 27-Apr-26
• Global Call Registration Link: https://www.netroadshow.com/events/login/1PeTHmohVjb76F1RZFBVZuD4N8rNK49hvTb8j
• Netroadshow Entry Code: Capsgel12026
• Netroadshow Direct Link: https://www.netroadshow.com/nrs/home/!/?show=bf5c1c4a
• Global Investor Presentation Public Replay Link: www.netroadshow.com/nrs/home/#!/?show=b2b545b6
• Books Close: 15:30 UKT Today. Pricing today UK afternoon
• Documentation Update: To be posted shortly on Netroadshow