Covance completes placement of $250 million notes in four series

By Lisa Kerner

Charlotte, N.C., Nov. 20 - Covance, Inc. issued $250 million of senior notes to a group of institutional investors under its previously announced Oct. 2 agreement.

The notes were issued on Friday in four series as follows:

• $15 million of 3.25% series 2013A notes due Nov. 15, 2018;

• $50 million of 3.90% series 2013B notes due Nov. 15, 2020;

• $90 million of 4.50% series 2013C notes due Nov. 15, 2023; and

• $95 million of 4.65% series 2013D notes due Nov. 15, 2025.

Proceeds were used to refinance debt, according to an 8-K filing with the Securities and Exchange Commission.

The notes are guaranteed by some of Covance's domestic subsidiaries and are secured by a pledge of 65% of the capital stock of some of its foreign subsidiaries.

As previously reported, the notes have a make-whole call at Treasuries plus 50 basis points. Covance may prepay at any time all of the notes or from time to time any part of the notes in an amount not less than 5% of the total principal amount outstanding in the case of a partial prepayment.

Purchasers include Northwestern Mutual Life Insurance Co., Teachers Insurance and Annuity Association of America, Lincoln National Life Insurance Co., Guardian Life Insurance Co. of America, Jackson National Life Insurance Co., TransAmerica Financial Life Insurance Co., Monumental Life Insurance Co., Genworth Life Insurance Co., United of Omaha Life Insurance Co., State Farm and Accident Assurance Co., Modern Woodmen of America, America United Life Insurance Co., State Life Insurance Co. and State of Wisconsin Investment Board.

Covance is a Princeton, N.J.-based drug-development services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.