By Paul A. Harris
Portland, Ore., June 16 – ICON plc priced a $500 million issue of five-year senior secured notes (Ba1/BB+) at par to yield 2 7/8% on Wednesday, according to market sources.
The yield printed at the tight end of yield talk in the 3% area. Initial guidance was in the low 3% area.
The deal was heard to have been multiple-times oversubscribed, a trader said.
Citigroup was the lead left bookrunner. Morgan Stanley was a joint bookrunner. Joint lead managers were HSBC, JPMorgan and Santander.
Earlier in the week the company downsized the notes offering from $2.015 billion, eliminating a proposed $1.515 billion tranche of seven-year secured notes and shifting the proceeds to a concurrent bank loan.
Proceeds from the debt offerings will be used to fund the acquisition of PRA Health Services Inc. and refinance ICON’s and PRA’s debt.
The company is a Dublin-based provider of outsourced drug and device development and commercialization services.
| Issuer: | Indigo Merger Sub, Inc. (PRA Health Sciences, Inc. after merger closes)
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| Amount: | $500 million
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| Maturity: | July 15, 2026
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| Securities: | Senior secured notes
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| Left bookrunner: | Citigroup
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| Joint bookrunner: | Morgan Stanley
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| Joint lead managers: | HSBC, JPMorgan and Santander
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| Coupon: | 2 7/8%
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| Price: | Par
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| Yield: | 2 7/8%
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| Spread: | 210 bps
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| First call: | July 15, 2023 at 101.438
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| Trade date: | June 16
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| Settlement date: | July 1
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| Ratings: | Moody's: Ba1
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| S&P: BB+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 3% area
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| Marketing: | Roadshow
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