Quintiles Transnational Corp. is moving along in setting up approval for its $1.7 billion buyout by Pharma Services Holdings, but the company has still not provided word on the status of the financing for the transaction. The pharmaceutical research and marketing firm said in its second quarter earnings conference call earlier this month that it hopes to hold a shareholder meeting to vote on the merger in the third quarter of this year. Sources said company officials did not address questions regarding the financing status during the conference call. Greg Connors, v.p. of investor relations, and a company spokeswoman did not return calls before press time.
A $390 million credit to back the buyout, led by Citigroup, was shopped to investors in June, but the credit fell off the map after investors found issues with the deal that prevented them from buying into the facility (LMW, 7/21, 6/23). Market players said the original deal was being reworked by the company and lead bank Citi. But a new bank deal, as well as a concurrent $450 million notes deal, has yet to emerge. In the past weeks, market players in both the fixed income and equity arenas have become concerned over the situation, as they have not been provided with clear information from the company or other parties involved. Market players said the company was also waiting on some audited financials from the Securities and Exchange Commission to proceed with the financing, but the nature of the SEC audit could not be ascertained. Calls to Citi bankers were not returned.