Quintiles Re-Emerges With Higher Pricing

  • 07 Sep 2003
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Citigroup relaunched syndication of the $390 million credit for Quintiles Transnational Corp. last week, increasing pricing and lengthening the tenor of the originally proposed deal, according to a banker. The credit, which was originally pitched in June and met cold investor reception, backs the company's $1.7 billion buyout by Pharma Services Holding (LMW, 6/23). Pricing on the seven-year, $315 million "B" loan is at LIBOR plus 33/4%, 50 basis points higher than when the deal launched in June, the banker explained. One year has also been added to the tenor. The deal's five-year, $75 million revolver is now priced at LIBOR plus 31/4%. It was originally shopped at LIBOR plus 3% with a four-year tenor, he said. The facility is still being offered at par, the banker noted. A Citi banker did not return calls.

The pharmaceutical research and marketing firm announced right before Labor Day that it also intends to offer $450 million in senior subordinated notes due 2013 to back the acquisition and to refinance existing Quintiles debt. "[I think Citi] will let the high-yield run its course," the banker said, explaining that Citi may use the high-yield to help syndicate the loan. The credit could be decreased and the bonds increased, he added. The notes are scheduled to price this Friday with a non-call feature for the first five years of the deal's term, the banker added.

Quintiles has scheduled a shareholder meeting for Sept. 25 to vote on the proposed acquisition by Pharma Services, a company formed by chairman and founder of Quintiles, Dennis Gillings and One Equity Partners--the private equity arm of Bank One. The close of the transaction is subject to the completion of the financing and the shareholder vote. One Equity was said to be contributing an equity commitment of $415.7 million to fund the deal, while $586 million of Durham, N.C.-based Quintiles cash is also set to be tapped. Greg Connors, Quintiles' senior v.p. of investor relations, did not return calls.


  • 07 Sep 2003

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Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 7,029 20 10.95
2 Bank of America Merrill Lynch (BAML) 6,703 19 10.45
3 JP Morgan 4,776 10 7.44
4 Credit Suisse 4,718 9 7.35
5 Deutsche Bank 4,262 13 6.64

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1 Wells Fargo Securities 67,591.81 167 11.54%
2 Bank of America Merrill Lynch 57,568.62 162 9.83%
3 JPMorgan 55,390.36 159 9.46%
4 Citi 55,051.46 160 9.40%
5 Credit Suisse 43,756.73 120 7.47%