Clarivate pricing $2 billion notes in secured and unsecured tranches in Thursday drive-by

By Paul A. Harris

Portland, Ore., June 10 – Clarivate Science Holdings Corp. plans to price $2 billion of high-yield notes in a Thursday drive-by trailing a conference call with investors, according to market sources.

The Rule 144A and Regulation S for life deal includes $1 billion of seven-year senior secured notes (expected ratings B2/B) with initial guidance in the low 4% area.

The offering also includes $1 billion of eight-year senior unsecured notes with initial guidance in the low 5% area. The unsecured notes are expected to garner credit ratings in the high triple-C range.

Citigroup is the left lead bookrunner. Goldman Sachs, BofA, RBC, Barclays, HSBC and JPMorgan are the joint bookrunners.

The notes in both tranches become callable after three years at par plus 50% of the respective coupons.

Proceeds will be used to help fund the acquisition of ProQuest, an Ann Arbor, Mich.-based provider of academic and scientific library research services. The deal is valued at $5.3 billion and is anticipated to close in the third quarter of 2021.

Proceeds will be escrowed until the closing of the acquisition, with mandatory redemption provisions in place pending successful completion of the acquisition.

Financing also includes proceeds from the sale of $1.25 billion of convertible securities and $1 billion of common shares.

Clarivate is a London-based data and analytics company focused on scientific and academic research and patent intelligence.

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