Fortrea expected to launch $570 million secured notes this week; initial talk high 7% to 8% area

By Paul A. Harris

Portland, Ore., June 6 – Fortrea is expected to launch a $570 million offering of senior secured notes (S&P: BB) during the present week, according to market sources.

Initial guidance has the deal coming to yield in the high-7% to 8% area.

Barclays will be the lead.

Proceeds plus $1.52 billion of credit facilities will be used to fund the spinoff of the company from Laboratory Corp. of America (LabCorp), under which Fortrea will make an expected $1.605 billion cash distribution to LabCorp as partial consideration for the assets that will be contributed in the spinoff.

Fortrea is a Durham, N.C.-based contract research organization providing comprehensive phase I through IV biopharmaceutical product and medical devices services.

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