Published on 8/3/2015 in the Prospect News High Yield Daily.
New Issue: Pharmaceutical Product Development prices $1.13 billion notes at par to yield 6 3/8%
By Paul A. Harris
Portland, Ore., Aug. 3 – Pharmaceutical Product Development, LLC, an indirect wholly owned subsidiary of Jaguar Holding Co. II, priced a $1,125,000,000 issue of eight-year senior notes (Caa1/B-) at par to yield 6 3/8% on Monday, according to a market source.
The yield printed at the tight end of yield talk in the 6½% area.
J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC and UBS Investment Bank were the joint bookrunners.
The Wilmington, N.C.-based company plans to use the proceeds, together with proceeds from an expected refinancing of its senior secured credit facility and cash on hand, to redeem $575 million of its 9½% senior notes due 2019, as well as to redeem Jaguar Holding Co. I (the parent)'s $1,125,000,000 of 9 3/8%/10 1/8% senior PIK toggle notes due 2017, and to fund dividends to shareholders and optionholders.
Pharmaceutical Product Development provides clinical trial and laboratory services to the pharmaceutical and biotechnology industries.
| Issuer: | Pharmaceutical Product Development, LLC, an indirect wholly owned subsidiary of Jaguar Holding Co. II
|
| Amount: | $1,125,000,000
|
| Maturity: | Aug. 1, 2023
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, UBS Investment Bank
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Spread: | 426 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Aug. 1, 2018, then callable at 104.781
|
| Trade date: | Aug. 3
|
| Settlement date: | Aug. 18
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6½% area
|
| Marketing: | Quick to market
|
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