Commentary & Deal Flow

CTEC II GMBH (CeramTec) (CERTEC) EUR465m (down from EUR515m) sr notes due 02/15/30 (8y). NC3 (MWC B+50bp), then at 102.625, 101.3125, 100. Equity claw: 3y 40% at 105.25. Caa2/CCC+ (stable/stable). Via MS (B&D)/BofA/Nomura/DB/MUFG/UBS jt books. No reg rights. List ISE. New York law. SMR at par if the acquisition has not closed by 08/31/22. Settles 02/02 (T+10). Reg S ISIN: XS2434776113. Px talk: 5.25%-5.50%.

Priced: 5.25% at 100. +540bp vs DBR 0% 02/15/30.

Did investor call at 12pm UKT 01/14. Books closed at 12pm UKT today UOP: along with EUR1.48bn (up from EUR1.430bn) term loan B (EUR250m revolver) (expect B2/B) via BofA/MS/Nomura/MUFG/DB/UBS (did lender call 01/10 and small group calls 01/10-12), to finance the acquisition/recapitalization of CeramTec. CPP Investments (Canada Pension Plan) is acquiring a 50% stake investment in CeramTec from BC European Capital X, Public Sector Pension Investments and Ontario Teachers' Pension Plan. BC Partners will retain the other 50% of CeramTec via its Fund XI. CPP Investments will contribute approximately EUR800m in equity (total equity contribution is EUR1.888bn). Ceramtec's existing debt will be refinanced as part of the transaction for a total cash contribution of EUR3.719bn. Biz: a leading global med-tech platform with a focus on high-performance ceramics. HQ: Plochingen, Germany. (Acquisition announced 08/17/21).