By Paul A. Harris
Portland, Ore., Sept. 19 – Star Parent, Inc. (Syneos Health Inc.) priced a downsized $1 billion issue of seven-year senior secured notes (B1/B/BB) at par to yield 9% on Tuesday, according to market sources.
The issue size decreased from $1.2 billion after having decreased earlier in the week from its original $1.7 billion size.
The yield printed 25 basis points below the tight end of the 9¼% to 9½% yield talk but came in line with initial guidance in the 9% area.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were 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.
The $700 million of total proceeds withdrawn from the notes shifted to the concurrent term loan B, which upsized to $2.7 billion on Tuesday after increasing to $2.5 billion from $2 billion earlier.
Proceeds from the notes and loan plus a $500 million revolver, along with sponsor equity and cash on hand, will be used to support the buyout of Syneos Health by Elliott Investment Management, Patient Square Capital and Veritas Capital, 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.
| Issuer: | Star Parent, Inc.
|
| Amount: | $1 billion, decreased from $1.2 billion after earlier downsizing from $1.7 billion
|
| Issue: | Senior secured notes
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| Maturity: | Oct. 1, 2030
|
| Left bookrunner: | Goldman Sachs & Co. LLC
|
| Joint bookrunners: | 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
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 465 bps
|
| First call: | Oct. 1, 2026 at 104.5
|
| Trade date: | Sept. 19
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| Settlement date: | Sept. 28
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| Ratings: | Moody’s: B1
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| S&P: B
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9¼% to 9½%
|
| Marketing: | Roadshow
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