Quintiles Transnational to launch $2.23 billion facility on Wednesday

By Sara Rosenberg

New York, May 10 - Quintiles Transnational Corp. is scheduled to hold a call on Wednesday to launch a new $2.225 billion credit facility, according to an informed source.

J.P. Morgan Securities LLC, Barclays Capital Inc., Morgan Stanley & Co. Inc., Citigroup Global Markets Inc. and Wells Fargo Securities LLC are the lead banks on the deal, with J.P. Morgan the left lead.

The facility consists of a $225 million revolver due in 2016 and a $2 billion term loan B due in 2018.

Proceeds will be used to refinance approximately $1.7 billion of existing debt, including $525 million of 9½% senior notes due December 2014.

The tender offer for the notes expires on June 7.

The company said in a press release that the refinancing is intended to provide it with more favorable debt terms within a debt market currently offering attractive terms to companies with strong financial track records.

Quintiles attempted a similar refinancing effort in March, which was postponed when global credit market conditions became unfavorable.

At that time, the company was looking to get a $2.43 billion credit facility, comprised of a $2.2 billion term loan B due in 2018, talked at Libor plus 300 basis points to 325 bps with a 1.25% Libor floor and an original issue discount of 991/2, and a $225 million revolver due in 2016. The term loan B included 101 soft call protection for six months.

Quintiles is a Durham, N.C.-based biopharmaceutical services company offering clinical, commercial, consulting and capital services.

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