Eurofins Scientific launches €500 million seven-year senior notes

By Paul A. Harris

Portland, Ore., July 17 – Eurofins Scientific launched a €500 million offering of seven-year senior notes on a Monday conference call with investors, according to a market source.

BNP Paribas and BofA Merrill Lynch are the global coordinators.

Credit Agricole, Natixis and UniCredit are the joint bookrunners.

The deal is being marketed by means of an internet roadshow. Subsequent timing remains to be announced.

The Luxembourg-based laboratory services provider plans to use the proceeds to repay bonds maturing in 2018 and for enhanced liquidity.

Eurofins cited favorable market conditions and strong merger and acquisition activity year to date in its decision to go forward with the bond deal, according to a Monday press release from the company.

In addition to attractive credit market conditions, potential future rate increases compelled the company to bring the deal, which will strengthen its liquidity position for the remainder of 2017 and extend its debt maturity profile.

“I am happy to report on strong M&A results for the first half of the year where we added several profitable, high growth and defensive companies to our portfolio,” Gilles Martin, Eurofins’ chief executive officer, stated in the Monday press release.

“We continue to examine several interesting opportunities, while sticking to our financial discipline of maintaining a sound capital structure, and creating long-term value for our shareholders and investors.

“This discipline is exemplified by the fact that Eurofins has continued to focus on smaller transactions at a reasonable overall multiple.”

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