Nov. 15 (Bloomberg) -- Pharmaceutical Product Development Inc. increased the size of a 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 provider of drug discovery and development services increased the term loan to $1.45 billion from $1.325 billion and reduced the rate it will pay lenders to 5 percentage points more than the benchmark from 5.5 percentage points, said the person, who declined to be identified because the terms are private.
The minimum on the London interbank offered rate will remain at 1.25 percent, according to the person. The loan will price at 98.5 cents on the dollar, a smaller discount than the 97 cents initially offered.
Credit Suisse Group AG is arranging the financing, said the person. Corporate ratings have been confirmed at B1 for Moody’s Investors Service and B+ by Standard & Poor’s.
The company reduced the size of a bond offering that will also be used to fund the buyout to $575 million from $700 million, according to another person who declined to be identified.
Carlyle and Hellman & Friedman agreed to buy Pharmaceutical Product Development in a deal valued at $3.9 billion. The buyout firms are taking the company private for $33.25 a share, according to an Oct. 3 company statement.
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