Quintiles, the world’s largest life sciences services firm, has closed on $2.2 billion in new financing.
The company says $1.7 billion will be used to pay off existing debt.
The remaining amount will be used for what the company called “a variety of purposes.”
“Additional proceeds will be employed for a variety of corporate purposes,” a company spokesperson told WRAL Tech Wire. “As a private company, Quintiles prefers to keep certain operational and financial details confidential. We do not expect to make further specifics of this deal public.”
Bloomberg reported last month that Quintiles offered to pay a higher interest rate on the $2.23 billion in loans it’s seeking to refinance about $1.7 billion of debt and push its nearest maturity to 2018, according to a May 10 statement. The company also plans to pay a dividend to shareholders, said a person with knowledge of the transaction.
Loan prices have risen 0.67 cent on average since March 22, when Quintiles, based in Research Triangle Park, North Carolina, ended an earlier bid to refund its debt. Companies have taken advantage of an open market to refinance $170 billion of leveraged, or high-risk, loans this year, according to data compiled by Bloomberg.
(Bloomberg contributed to this report.)
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