By Paul A. Harris
Portland, Ore., Dec. 12 – Synlab AG parent company Ephios Subco 3 Sarl priced a downsized €450 million issue of seven-year senior secured notes (B2/B+/B+) at par to yield 7 7/8% on Tuesday, according to a market source.
The announced issue size was €550 million. That size was revised to a range of €450 million to €650 million, earlier Tuesday.
With the bond tranche size coming at the low end of its range, a concurrent bank loan was upsized to €1 billion from €900 million, the high end of the €800 million to €1 billion size range announced earlier Tuesday.
The bond yield printed at the tight end of yield talk in the 8% area. That talk was tightened early Tuesday from earlier official talk in the 8¼% area.
Global coordinators and joint bookrunners were Deutsche Bank Securities Inc., Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole CIB, Mizuho Securities USA Inc. and Natixis Securities Americas LLC. Additional joint bookrunners were Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., ING Financial Markets LLC, RBI, Santander Investment Securities Inc., SMBC Nikko Securities America Inc., Standard Chartered Bank and UniCredit Capital Markets LLC.
Proceeds from the bonds and loan will be used to fund the acquisition of Synlab AG by Cinven for €10 per share and to repay an existing term loan A due 2026.
Synlab is a Munich-based medical diagnostics services provider.
| Issuer: | Ephios Subco 3 Sarl
|
| Amount: | €450 million (target range €450 million to €650 million)
|
| Issue: | Senior secured notes
|
| Maturity: | January 2031
|
| Global coordinators: | Deutsche Bank Securities Inc., Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole CIB, Mizuho Securities USA Inc. and Natixis Securities Americas LLC
|
| Joint bookrunners: | Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., ING Financial Markets LLC, RBI, Santander Investment Securities Inc., SMBC Nikko Securities America Inc., Standard Chartered Bank and UniCredit Capital Markets LLC
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Call protection: | Three years
|
| Trade date: | Dec. 12
|
| Ratings: | Moody’s: B2
|
| S&P: B+
|
| Fitch: B+
|
| Distribution: | Rule 144A and Regulation S
|
| ISINs: | XS2734938249, XS2734938678
|
| Price talk: | 8% area, revised from 8¼% area
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