Quintiles receives consents to amend indentures of 10% notes, 11½% discount notes

By Angela McDaniels

Seattle, March 17 - Quintiles Transnational Corp. and Pharma Services Intermediate Holding Corp. have received the consents necessary to amend the indentures under Quntiles' $450 million of 10% senior subordinated notes due 2013 and Pharma Services' $219 million principal amount at maturity of 11½% senior discount notes due 2014, according to a company news release.

The amendments to the indentures eliminate or make less restrictive most of the restrictive covenants and amend certain related provisions.

The consent solicitation ended March 16. The accompanying tender offer will continue until midnight ET on March 30, unless extended.

The companies said they have elected to pay the total consideration, including the consent payment, for all notes tendered until the deadline.

For each $1,000 principal amount of 10% notes, holders will receive $1,156.25. For each $1,000 principal amount at maturity of 11½% notes, holders will receive $901.25.

The payouts include a $30.00 per $1,000 principal amount at maturity consent payment.

As of 5 p.m. ET on March 16, roughly $446 million, or 99.1%, of the 10% notes and $219 million principal amount at maturity, or 100%, of the 11½% discount notes had been tendered, according to the release.

Both companies plan to execute a supplemental indenture incorporating the amendments with Wells Fargo Bank NA, trustee under each indenture, as soon as practicable. However, the amendments will not become operative unless and until the companies purchase the validly tendered notes.

The offers are conditioned upon sufficient funding, tenders from holders of a majority of notes, the execution of supplemental indentures and the completion of the tender offer for both series of notes.

Citigroup Corporate and Investment Banking is the dealer manager (800 558-3745 or call collect 212 723-6106). Global Bondholder Services Corp. is the tender agent and information agent (866 873-7700 or call collect 212 430-3774).

Quintiles is based in Research Triangle Park, N.C., and provides product development and commercial development services to the pharmaceutical, biotechnology and medical device industries.

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