VWR revises talk, restructures step-ups for $350 million five-year PIK notes

By Paul A. Harris

St. Louis, Nov. 29 - VWR International revised the price talk on its $350 million offering of five-year senior floating-rate PIK notes (Caa1/CCC) on Wednesday, according to market sources.

The revision takes the talk to Libor plus 450 basis points at 98.50 from the previous talk of the Libor plus 437.5 bps area at 99.00 to 99.25.

The books are scheduled to close at 10 a.m. ET on Thursday, with pricing expected thereafter.

Banc of America Securities LLC has the books for the notes, which are being offered via Rule 144A with registration rights.

The notes will be cash-pay or PIK at the issuer's option and will feature a 75 bps PIK coupon premium.

The notes will be callable immediately and for the first year at par, then at 102 in year two, 101 in year three and again at par in year four.

In addition to the price talk revision, the company also restructured the coupon step-ups on Thursday. There will be two 50 bps step-ups, the first to take effect at the earlier of an IPO or 12 months from the date the notes settle, which was the only step-up under the previous structure. The second step-up will take effect 12 months after the first step-up.

Proceeds will be used to fund a distribution to shareholders.

The issuer is a West Chester, Pa., distributor of scientific supplies.

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