Quintiles looking at $425 million loan, $450 million bonds for debt package

By Sara Rosenberg

New York, April 28 - Quintiles Transnational Corp. is looking at a $425 million credit facility and $450 million of high-yield bonds for its previously revealed $875 million debt financing packaging, according to market sources. Citigroup is the lead bank on the deals.

The credit facility is anticipated to contain a $75 million revolver and $350 million in term loans. According to one source, the syndicate is still contemplating whether the term loan portion will contain a term A and a term B or whether it will just be one large term B.

This structure, however, is still fluid and may be changed before the launch of the debt financing packages, sources added. A bank meeting for the credit facility may occur in May, however, exact timing has not yet been set.

Proceeds will be used to help fund the leveraged buyout of Quintiles by Pharma Services Holdings Inc., which is expected to be completed later this year.

The company has also received an equity commitment of $415.7 million from One Equity Partners, LLC and intends to use existing Quintiles cash of approximately $586 million to fund the transaction.

Pharma Services was founded by Dennis B. Gillings, chairman of the board and founder of Quintiles, and One Equity Partners, LLC. Quintiles is a Durham, N.C. provider of product development and commercial development solutions to the pharmaceutical, biotechnology and medical device industries.

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