S&P rates Quintiles loan BB-

Standard & Poor's said that it assigned a BB- issue rating and 4 recovery rating to Quintiles Transnational Corp.'s new senior secured $225 million revolver due 2016 and senior secured $2 billion term loan due 2018. The 4 recovery rating indicates average (30%-50%) recovery in the event of a default.

The outlook is stable.

The company plans to use the proceeds, along with some of its on hand cash, to refinance all of its existing debt and to pay a dividend to shareholders.

S&P affirmed the BB- corporate credit rating on Quintiles.

The ratings on Quintiles continue to reflect the company's aggressive financial policy and potential for business volatility because of customers' variable appetite for its services, the agency said.

Mitigating these factors, however, is Quintiles' industry-leading position as a contract research organization to the pharmaceutical and biotechnology industries, its ample cash reserves and its consistent operating performance, the agency added.

© 2015 Prospect News.
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