By Paul A. Harris
St. Louis, May 7 - Inverness Medical Innovations, Inc. doubled the size of its high-yield bond offering to $400 million from $200 million and priced it in the middle of yield talk on Thursday, according to an informed source.
The new Inverness 9% seven-year senior subordinated notes (B3/B-/) priced at 96.865 to yield 9 5/8%.
Price talk was 9½% to 9¾% with an original issue discount of 2 points to 3 points.
The deal was a blowout, according to an informed source, who added that the $400 million of available bonds played to a quality book containing between $1.2 billion and $1.3 billion of orders.
UBS Investment Bank was the left bookrunner for the Securities and Exchange Commission-registered offering.
Goldman Sachs & Co. and Banc of America Securities LLC were joint bookrunners.
Proceeds will be used for general corporate purposes, including potential acquisitions.
Inverness Medical is a Waltham, Mass.-based developer of medical diagnostic devices.
| Issuer: | Inverness Medical Innovations, Inc.
|
| Face amount: | $400 million, increased from $200 milllion
|
| Proceeds: | $387.46 million
|
| Maturity: | May 15, 2016
|
| Security description: | Senior subordinated notes
|
| Left bookrunner: | UBS Investment Bank
|
| Joint bookrunners: | Goldman Sachs & Co., Banc of America Securities LLC
|
| Co-managers: | Canaccord Adams, Leerink Swann, Stifel Nicolaus & Co.
|
| Coupon: | 9%
|
| Price: | 96.865
|
| Yield: | 9 5/8%
|
| Spread: | 679 bps
|
| Call features: | Callable on May 15, 2013 at 104.5, 102.25, par on and after May 15, 2015
|
| Equity clawback: | 35% at 109.0 until May 15, 2012
|
| Trade date: | May 7
|
| Settlement date: | May 12
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | SEC registered
|
| Price talk: | 9½% to 9¾% with an original issue discount of 2 points to 3 points
|
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