Syneos to start roadshow on Monday for $1.7 billion seven-year secured notes; initial talk 9% area

By Paul A. Harris

Portland, Ore., Sept. 6 – Star Parent, Inc. plans to start a roadshow on Monday for a $1.7 billion offering of seven-year senior secured notes coming in support of the buyout of Syneos Health Inc. by Elliott Investment Management, Patient Square Capital and Veritas Capital, according to market sources.

The roadshow is scheduled to run through Sept. 13, and the notes are set to price thereafter.

The notes are in the market with initial guidance in the 9% area.

The deal, which was pre-marketed in mid-to-late August, is heard to be kicking off to $3 billion of demand, a bond trader said.

The Rule 144A and Regulation S for life notes become subject to their initial call in three years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The notes also feature a three-year 40% equity clawback at par plus the full coupon.

Goldman Sachs & Co. LLC is the left bookrunner. UBS Securities LLC, RBC Capital Markets LLC, BMO Capital Markets Corp., HSBC Securities (USA) Inc., Wells Fargo Securities LLC, Citigroup Global Markets Inc., Jefferies LLC, Macquarie Capital (USA) Inc., Natixis Securities Americas LLC, Truist Securities Inc., Citizens Capital Markets Inc., MUFG Securities Americas Inc., SMBC Nikko Securities America Inc., Capital One Securities Inc. and SG Americas Securities LLC are the joint bookrunners.

Proceeds plus a $2 billion term loan B and a $500 million revolver, along with sponsor equity and cash on hand will be used to support the buyout, as well as for working capital and general corporate purposes.

The buyout, valued at about $7.1 billion, is expected to close during the second half of this year.

Syneos is a Morrisville, N.C.-based biopharmaceutical solutions organization.

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