Published on 4/7/2004 in the Prospect News High Yield Daily.
New Issue: VWR International sells $520 million notes in two parts
By Paul A. Harris
St. Louis, April 7 - VWR International sold a combined $520 million of high-yield bonds in two tranches on Wednesday, a syndicate source said.
The West Chester, Pa.-based company sold $200 million of eight-year senior notes (B2/B) at par to yield 6 7/8%. Price talk was in the area of 7%.
VWR also sold $320 million of 10-year senior subordinated notes (B3/B-) at par to yield 8%. Price talk on the subordinated notes was in the area of 8%.
Deutsche Bank Securities, Citigroup and Banc of America Securities ran the books on the Rule 144A issue. The co-managers were Barclays Capital and BNP Paribas.
Proceeds will be used to support the acquisition of VWR by Clayton, Dubilier & Rice Inc. from Merck KGaA for $1.68 billion.
The company is a distributor of laboratory supplies to the industrial, pharmaceutical, educational and government markets.
| Issuer: | VWR International
|
| Amount: | $520 million
|
| Bookrunners: | Deutsche Bank Securities, Citigroup, Banc of America Securities
|
| Co-managers: | Barclays Capital, BNP Paribas
|
| Pricing date: | April 7
|
| Settlement date: | April 13
|
|
|
| Senior tranche
|
| Amount: | $200 million
|
| Maturity: | April 15, 2012
|
| Security description: | Senior notes
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 310 basis points
|
| Call features: | Callable after April 15, 2008 at 103.438, 101.719, par on or after April 15, 2010
|
| Ratings: | Moody's B2
|
| Standard & Poor's: B
|
| Price talk: | 7% area
|
|
|
| Subordinated tranche
|
| Amount: | $320 million
|
| Maturity: | April 15, 2014
|
| Security description: | Senior subordinated notes
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 384 basis points
|
| Call features: | Callable after April 15, 2009 at 104.0, 102.667, 101.333, par on or after April 15, 2012
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | 8% area
|
|
|
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