By Paul Deckelman
New York, Dec. 4 - Quintiles Transnational Holdings Inc. priced a $525 million issue of 9½% five-year senior notes (B3/B) due Dec. 30, 2014 at 98 on Friday to yield 10.012%, high yield sources said.
The deal came essentially in line with pre-deal price talk which had circulated in the market Friday, envisioning an all-in yield in the 10% area, with an original issue discount of 2 points.
The Rule 144A/Regulation S offering, sold without registration rights, was brought to market via joint book-running managers Morgan Stanley & Co. Inc. and Citigroup Global Markets Inc.
The notes can be called any time before Dec. 30, 2010 at a price of 102.5, and subsequent to that at a declining premium
The offering was upsized from the $400 million originally planned. Gross proceeds from the deal were $514.5 million.
The Research Triangle Park, N.C.-provider of services to the pharmaceutical industry plans to use the deal proceeds to fund a $275 million dividend, as well as related payments to certain option holders of $8 million. Some $97 million of cash will be used to support PharmaBio's future operations and cash out its fractional shareholders.
| Issuer: | Quintiles Transnational Holdings Inc.
|
| Amount: | $525 million, upsized from $400 million
|
| Proceeds: | Gross: $514.5 million
|
| Maturity: | Dec. 30, 2014
|
| Joint bookrunners: | Morgan Stanley & Co. and Citigroup Global Markets Inc.
|
| Coupon: | 9½%
|
| Price: | 98 |
|
| Yield: | 10.012%
|
| Spread: | 777 basis points
|
| Call features: | At 102.5 prior to Dec. 30, 2010 at 102.5, then at 102, 101, declining to par on or after Dec. 30, 2013
|
| Trade date: | Dec. 4
|
| Settlement date: | Dec. 15
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A/Regulation S, no registration rights
|
| Price talk: | 10% area all-in yield with 2 points OID
|
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