Envigo, a provider of non-clinical contract research services and research models, allocated a $300 million offering of senior secured term loan B due 2024, which was priced at LIBOR plus 550 basis points.

Proceeds from the term loan will be used to refinance the company’s existing debt in connection with the closing of its definitive merger agreement with Avista Healthcare Public Acquisition, a special purpose acquisition company.

As part of the loan offering, the company will also issue a new $50 million revolving credit facility. The merger and refinancing are expected to close in the first quarter of 2018, and Envigo will subsequently become a publicly traded company.

JPMorgan is serving as the administrative agent for the refinancing, as well as joint bookrunner with SunTrust Robinson Humphrey and Barclays.