Bloomberg News

PPD Said to Set Nov. 8 Lender Meeting for $1.325 LBO Financing

November 07, 2011

Nov. 4 (Bloomberg) -- Pharmaceutical Product Development Inc., the provider of drug discovery and development services, will host a lender meeting on Nov. 8 in New York to discuss a $1.325 billion term loan it’s seeking to finance its buyout by Carlyle Group and Hellman & Friedman LLC, according to a person with knowledge of the transaction.

The seven year debt will pay 5.5 percentage points more than the London interbank offered rate, said the person, who declined to be identified because the terms are private. Libor, a rate banks charge to lend to each other, will have a 1.25 percent floor.

The company is proposing to sell the loan at 97 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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