By Paul A. Harris
Portland, Ore., Aug. 4 – Emergent BioSolutions Inc. priced an upsized $450 million issue of eight-year senior notes at par to yield 3 7/8% on Tuesday, according to market sources.
The issue size increased from $400 million.
The yield printed at the tight end of yield talk in the 4% area and deep inside of the 4½% to 4¾% initial guidance, a bond trader said, adding that the deal was heard to be playing to $4.5 billion of orders at 3 7/8%.
Timing was moved ahead. The deal was announced earlier in the day as Wednesday business.
Wells Fargo Securities LLC was the left bookrunner.
The Rockville, Md.-based life sciences company plans to use the proceeds to repay debt under its revolving credit facility and for general corporate purposes.
Issuer: | Emergent BioSolutions Inc.
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Amount: | $450 million, increased from $400 million
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Maturity: | Aug. 15, 2028
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Securities: | Senior notes
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Left bookrunner: | Wells Fargo Securities LLC
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Joint bookrunners: | J.P. Morgan Securities LLC, PNC Capital Markets LLC and RBC Capital Markets LLC
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Co-managers: | BMO Capital Markets Corp., Capital One Securities Inc., Citizens Capital Markets Inc., Huntington Investment Co., MUFG, Truist Securities Inc. and Regions Securities LLC
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Coupon: | 3 7/8%
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Price: | Par
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Yield: | 3 7/8%
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Spread: | 346 bps
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Call protection: | Two years
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Trade date: | Aug. 4
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Settlement date: | Aug. 7
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Ratings: | Moody's: Ba3
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| S&P: BB-
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 4% area
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Marketing: | Drive-by
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