New Issue: VWR sells $296.2 million proceeds 10-year discount notes at 61.58 to yield 9¾%

By Paul A. Harris

St. Louis, Dec. 8 - CDRV Investors Inc. (VWR holding company) sold $296.2 million proceeds of 10-year senior discount notes (Caa2/B-) at 61.58 on Wednesday to yield 9¾%, according to a syndicate source. The $481 million face amount issue will pay a 0% coupon for the first five years, after which the coupon steps up to 9 5/8%.

Price talk was 9½% to 9¾%.

Deutsche Bank Securities, Citigroup and Banc of America Securities LLC were joint bookrunners for the Rule 144A issue.

Proceeds will be used to pay a dividend to sponsor Clayton, Dubilier & Rice.

The issuer is a West Chester, Pa.-based distributor of laboratory supplies to the industrial pharmaceutical, educational and government markets.

Issuer:	CDRV Investors Inc. (VWR holding company)
Face amount:	$481 million
Proceeds:	$296.2 million
Maturity:	Jan. 1, 2015
Security description:	Senior discount notes
Bookrunners:	Deutsche Bank Securities, Citigroup, Banc of America Securities LLC
Coupon:	0% for five years, then 9 5/8%
Price:	61.58
Yield:	9¾%
Spread:	557 basis points
Call features:	Callable after Jan. 1, 2010 at 104.813, 103.208, 101.604, par on and after Jan. 1, 2013
Equity clawback:	Until Jan. 1, 2007 for 35% at 109.625 accreted
Trade date:	Dec. 8
Settlement date:	Dec. 16
Ratings:	Moody's: Caa2
	Standard & Poor's: B-
Price talk:	9½%-9¾%

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