PRA Holdings, the clinical research firm that KKR & Co. is acquiring from Genstar Capital LLC, is seeking $950 million in loans to support the buyout and its merger with ReSearch Pharmaceutical Services Inc., according to a person with knowledge of the transaction.
UBS AG, Jefferies Group Inc., Credit Suisse Group AG, KKR’s lending arm and Citigroup Inc. are arranging the financing and will host a lender meeting on Sept. 4 at noon in New York, said the person, who asked not to be identified because the information is private. The deal (KKR:US) includes a five-year, $125 million revolving line of credit and an $825 million first-lien term piece that matures in seven years.
KKR has invested more than $9 billion in health care globally since 1995, including its acquisition with Bain Capital LLC and Merrill Lynch & Co. of HCA Inc. in 2006 for $32 billion, according to data compiled by Bloomberg. The New York-based company is acquiring PRA from private-equity firm Genstar, which bought it in 2007 for $797 million, Genstar said in a June 24 statement. KKR said it will merge PRA with RPS, which it agreed to acquire from Warburg Pincus LLC on July 31.
Kristi Huller, a spokeswoman for KKR, declined to comment. Roger Boutin, a spokesman at Raleigh, North Carolina-based PRA, didn’t immediately return an e-mail seeking comment.
The transaction is expected to close this quarter, according to the company statements.
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