By Andrea Heisinger
Omaha, June 26 - Varietal Distribution Merger Sub, Inc. (VWR) priced a $675 million issue of eight-year toggle notes (Caa1/CCC+) at par to yield 10¼% on Tuesday, according to an informed source.
The yield was printed 25 basis points beyond the wide end of the 9¾% to 10% price talk.
The notes pay a cash coupon of 10¼% and pay 11¼% if the buyer opts for payment in kind.
Goldman Sachs, Banc of America Securities LLC and JP Morgan were joint bookrunners for the issue, which was placed via Rule 144A with registration rights and via Regulation S. Deutsche Bank Securities was the co-manager.
Proceeds will be used to redeem existing debt and finance the acquisition of CDRV Investors, Inc., the parent of VWR, by Madison Dearborn Partners.
Upon completion of the acquisition Varietal Merger Sub will be merged with and into CDRV Investors, and CDRV Investors will assume the obligations under the notes.
VWR is a West Chester, Pa., provider of laboratory equipment to the pharmaceutical, biotechnology, chemical and other industries.
| Issuer: | Varietal Distribution Merger Sub, Inc.
|
| Face amount: | $675 million
|
| Maturity: | July 15, 2015
|
| Security description: | Toggle notes
|
| Bookrunners: | Goldman Sachs, Banc of America Securities LLC, JP Morgan
|
| Co-manager: | Deutsche Bank Securities
|
| Cash coupon: | 10¼%
|
| PIK coupon: | 11¼%
|
| Price: | Par
|
| Yield: | 10¼%
|
| Spread: | 518 bps
|
| Call features: | Callable on July 15, 2011 at 105.125, 102.563, par on and after July 15, 2013
|
| Trade date: | June 26
|
| Settlement date: | June 29
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A with registration rights/regulation S
|
| Price talk: | 9¾% to 10%
|
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