By Paul A. Harris
Portland, Ore., Feb. 10 – Catalent Inc. priced an upsized $550 million issue of eight-year senior notes (B1/BB-) at par to yield 3 1/8% in a Wednesday drive-by, according to a market source.
The issue size increased from $475 million.
The yield printed at the tight end of yield talk in the 3¼% area. Initial guidance was in the high 3% area.
The deal was heard to be eight-times oversubscribed, a trader said.
J.P. Morgan Securities LLC is leading the Rule 144A and Regulation S offering.
The notes were sold via Catalent Pharma Solutions, Inc.
The Somerset, N.J.-based provider of advanced delivery technologies for the biopharmaceutical sector plans to use the proceeds to fully redeem its 4 7/8% senior notes due 2026, as well as to provide cash on its balance sheet and for general corporate purposes, including capital expenditures.
| Issuer: | Catalent Pharma Solutions, Inc.
|
| Amount: | $550 million, increased from $475 million
|
| Tenor: | Eight years
|
| Securities: | Senior notes
|
| Lead: | J.P. Morgan Securities LLC
|
| Coupon: | 3 1/8%
|
| Price: | Par
|
| Yield: | 3 1/8%
|
| Call protection: | Three years
|
| Trade date: | Feb. 10
|
| Settlement date: | Feb. 22
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 3¼% area
|
| Marketing: | Drive-by
|
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