Quintiles talks $800 million eight-year notes to yield in 5% area; pricing Wednesday

By Paul A. Harris

Portland, Ore., May 5 – Quintiles Transnational Holdings Inc. talked its $800 million offering of eight-year senior notes (Ba3/BB) to yield in the 5% area, according to an informed source.

Books were scheduled to close on Tuesday, and the Rule 144A and Regulation S for life deal is set to price Wednesday.

Joint bookrunner Barclays will bill and deliver. J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and Wells Fargo Securities LLC are also joint bookrunners.

BNP Paribas Securities Corp. and SunTrust Robinson Humphrey, Inc. will be co-managers.

The notes come with three years of call protection, with the first call at par plus 75% of the coupon.

There will be an equity clawback for up to 40% of the notes for the first three years after issue, as well as a change-of-control put at 101%.

The notes will have investment-grade-style covenants, limited to limitations on liens, sale & leaseback transactions, and mergers, consolidations or sales of assets.

The company, a Research Triangle Park, N.C.-based provider of biopharmaceutical development and commercial outsourcing services, plans to use the new-deal proceeds to repay its existing credit facility and for general corporate purposes, including corporate transactions and share repurchases.

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