Quintiles dusts off plans for $2 billion in bank financing

Quintiles is resuming its plans to raise more than $2 billion in bank financing. The […]

Quintiles is resuming its plans to raise more than $2 billion in bank financing.

The Durham, North Carolina, clinical research organization announced late Tuesday that it would enter into a new $2.2 billion credit facility, with proceeds from the borrowed money being used to refinance $1.7 billion in existing debt, including an offer to buy $525 million of 9.5 percent outstanding senior notes that are due in 2014.

The new financing follows plans that Quintiles drew up in March, when the company said it took  advantage of favorable borrowing conditions and reached preliminary terms with lenders for loans totaling $2.4 billion. In addition to the debt refinancing, the loans would also be used for acquisitions and partnerships with pharmaceuticals companies.

But the company later that month postponed the financing plans explaining that the favorable terms were no longer available due to global credit market conditions. The company now says that the bank financing will provide it with more favorable debt terms within “a debt market currently offering attractive terms to companies with strong financial track records.”

The new Quintiles financing comes amid some recent merger and acquisition activity in the space that has kept other CROs, large and small, fairly busy. For example,  INC Research last week announced an agreement to buy Kendle International for $232 million.

Other CROs have been adding new capabilities, such as consulting. Earlier Tuesday, PPD (NYSE:PPDI) said it is was expanding its consulting services into four new areas. In January, inVentive Health purchased CRO i3 Research as well as consulting firm Campbell Alliance. In March, Morrisville, North Carolina CRO Clinipace Worldwide purchased Colorado consulting firm Regulus Pharmaceutical Consulting.

Privately-held Quintiles already offers many of those services to pharmaceutical companies. It is CRO industry’s largest firm with more than $3 billion in annual revenue and its offerings include clinical trial work, commercialization and consulting services for pharmaceutical companies. The company has global operations spanning 60 countries.

Shares0
Shares0