By Paul A. Harris
Portland, Ore., July 23 – Labco/Synlab priced an upsized €1.06 billion three-part offering of high-yield notes backing the acquisition of Germany-based Synlab, according to a market source.
The overall size of the deal increased from €1.05 billion.
All three of the tranches that made up the deal were priced on top of price talk.
Ephios Bondco plc priced an upsized €685 million of Labco senior secured notes due July 1, 2022 (B2/B+/B+) in two add-on tranches.
A €400 million add-on to the 6¼% notes priced at 99 to yield 6.429%.
A €285 million add-on to the Euribor plus 500 basis points notes also priced at 99.
The combined size of the secured portion of the deal was increased from €675 million.
Global coordinator JPMorgan will bill and deliver for the secured notes.
In the sole unsecured tranche, Ephios Holdco II plc priced €375 million of new eight-year senior unsecured notes (Caa1/B-/CCC+) at par to yield 8¼%.
Global coordinator Goldman Sachs will bill and deliver for the unsecured notes.
Barclays, Deutsche Bank, BNP Paribas, HSBC and Morgan Stanley were also global coordinators.
Proceeds will be used to finance the acquisition of Synlab by Cinven. The additional €10 million of proceeds resulting from the upsize will be used to fund the original issue discounts.
Synlab is an Augsburg, Germany-based laboratory services provider.
| Enterprise: | Labco/Synlab
|
| Amount: | €1.06 billion, increased from €1.05 billion
|
| Global coordinators: | Goldman Sachs, JPMorgan, Barclays, Deutsche Bank, BNP Paribas, HSBC, Morgan Stanley
|
| Trade date: | July 23
|
| Settlement date: | Aug. 6
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Secured notes
|
| Issuer: | Ephios Bondco plc
|
| Amount: | €685 million, increased from €675 million
|
| Maturity: | July 1, 2022
|
| Bill and deliver: | JPMorgan
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Fitch: B+
|
|
|
| Fixed-rate secured tranche
|
| Amount: | €400 million
|
| Security description: | Add-on to 6¼% senior secured notes due July 1, 2022
|
| Coupon: | 6¼%
|
| Price: | 99
|
| Yield: | 6.429%
|
| Spread: | 619 bps
|
| Call: | Make-whole call at Bunds plus 50 bps until July 1, 2018, then callable at 103.125
|
| Price talk: | 99
|
| Original issue: | €500 million priced at par on June 12, 2015
|
| Total issue size: | €900 million
|
|
|
| Floating-rate secured tranche
|
| Amount: | €285 million
|
| Security description: | Add-on to three-month Euribor plus 500 bps senior secured note due July 1, 2022
|
| Coupon: | Three-month Euribor plus 500 bps
|
| Price: | 99
|
| Call: | Presently callable at 101
|
| Price talk: | 99
|
| Original issue: | €300 million priced 99.50 on June 12, 2015
|
| Total issue size: | €585 million
|
|
|
| Unsecured notes
|
| Issuer: | Ephios Holdco II plc
|
| Amount: | €375 million
|
| Maturity: | July 1, 2023
|
| Bill and deliver: | Goldman Sachs
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 778 bps
|
| Call: | Make-whole call at Bunds plus 50 bps until July 1, 2018, then callable at 106.188
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Fitch: CCC+
|
| Price talk: | 8¼%
|
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