Quotient prices $120 million 12% notes due 2023; Carolina Trust places $10 million notes

By Devika Patel

Knoxville, Tenn., Oct. 14 – Friday was quiet for private placement news, with only one offering announced: Penicuik, Scotland-based diagnostics company Quotient Ltd. priced a $120 million private placement of 12% senior secured notes due Oct. 15, 2023. Also, after the close on Thursday, Lincolnton, N.C.-based bank holding company Carolina Trust BancShares, Inc. placed a $10 million offering of fixed-to-floating rate subordinated notes due 2026.

Quotient issued $84 million of the notes at the initial closing.

Morgan Stanley & Co. LLC was the placement agent.

Quotient note purchasers will receive a 2% royalty payment on net sales of MosaiQ instruments and consumables in the donor testing market in the European Union and the United States for eight years.

Proceeds from the Quotient sale will be used to repay all outstanding obligations to MidCap Financial Trust under a loan agreement and for general corporate purposes.

The Carolina Trust notes were placed by Sandler O'Neill + Partners and pay interest at 5.9% for the first five years and then float at Libor plus 571.8 basis points.

Proceeds from the Carolina Trust offering will be used for general corporate purposes, investment in subsidiary Carolina Trust Bank and, subject to regulatory approval, to redeem the remaining $2.58 million of outstanding preferred securities of the bank that were originally issued as part of the U.S. Treasury’s TARP program.

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