PharmaNet extends tender offer for 10 7/8% notes, increases price

By Angela McDaniels

Tacoma, Wash., June 13 - PharmaNet Development Group, Inc. extended the tender offer and consent solicitation for its 10 7/8% senior secured notes due 2017 and increased the payment on offer, according to a company news release.

The consent payment deadline was extended to 5 p.m. ET on June 14 from 5 p.m. ET on June 10, and the expiration date was extended to midnight ET on June 28 from midnight ET on June 24.

The purchase price is $1,255.00 - increased from $1,247.75 - per $1,000 principal amount of notes. This includes a consent payment of $50.00 for each note tendered by the consent payment deadline.

Holders will also receive accrued interest up to but excluding the settlement date.

As of 5 p.m. ET on June 10, holders had tendered about $73 million, or 40%, of the outstanding notes.

The company noted that the payment is a premium to the estimated weighted average of the equity-claw and make-whole redemption prices of the notes under the indenture.

If the tender offer is not successfully completed, PharmaNet plans to issue equity securities and to use the proceeds to redeem up to 35% of the notes using the equity clawback option and to redeem the remaining outstanding notes at the make-whole premium.

The tender offer began May 27 and is being made in connection with the sale by JLL PharmaNet Holdings, LLC of all of the capital stock of PDGI Holdco, Inc., PharmNet's holding company, to inVentiv Health Inc.

The tender offer is subject to the consummation of the sale to inVentiv, the receipt of consents from the holders of at least two-thirds of the notes and the execution of a supplemental indenture effecting the amendments.

The dealer managers and solicitation agents are Jefferies & Co., Inc. (888 708-5831 or 203 708-5831) and UBS Securities LLC (888 719-4210 or 203 719-4210). The information agent is D.F. King & Co., Inc. (800 967-4607).

Princeton, N.J.-based PharmaNet provides product-development and clinical-development services to pharmaceutical, biotechnology and medical device companies.

inVentiv is a Somerset, N.J.-based provider of outsourced clinical-development, launch and commercialization services to the health-care industry.

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