By Paul A. Harris
St. Louis, Nov. 30 - VWR International priced a restructured $350 million issue of three-month Libor plus 450 basis points five-year senior floating-rate notes (Caa1/CCC) at 98.50 on Thursday, according to a market source.
The notes priced on top of price talk that had been revised from the Libor plus 437.5 bps area at 99.00 to 99.25.
Banc of America Securities LLC ran the books for the notes, which were issued via Rule 144A with registration rights.
The notes will be cash-pay or PIK at the issuer's option and will feature a 75 bps PIK coupon premium.
In addition to the price talk revision, the company also restructured the coupon step-ups. There will be two 50 bps step-ups, the first to take effect at the earlier of an IPO or 12 months from the date the the notes settle, which was the only step-up under the previous structure. A second step-up will take effect 12 months after the first step-up.
Proceeds will be used to fund a distribution to shareholders.
The issuer is a West Chester, Pa., distributor of scientific supplies.
| Issuer: | VWR International
|
| Amount: | $350 million
|
| Maturity: | Dec. 1, 2011
|
| Security description: | Senior floating-rate notes
|
| Bookrunner: | Banc of America Securities LLC
|
| Coupon: | Three-month Libor plus 450 bps
|
| Price: | 98.50
|
| Toggle: | At issuer's option, interest can be paid in cash or PIK (PIK interest is 75 bps premium to cash pay rate)
|
| Step-ups: | Two 50 bps step-ups: first step-up at the earlier to occur of IPO or 12 months from settlement date, second to occur 12 months following the first step-up
|
| Mandatory redemption: | At par upon IPO of primary shares or change of control
|
| Call features: | Callable immediately and for the first year at par, then at 102 in year two, 101 in year three and again at par in year four
|
| Trade date: | Nov. 30
|
| Settlement date: | Dec. 14
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | Libor plus 450 bps at 98.50, revised from Libor plus 437.5 bps area at 99.00 to 99.25
|
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