Triangle Business Journal -- Quintiles says unfavorable conditions on global credit markets are forcing it to postpone a $2.43 billion financing plan that would have given the drug testing giant fresh cash to make acquistions.
“Quintiles continues to benefit from its strong cash position and existing favorable terms on its current credit facilities,” the company says in a release on the postponement decision. “It had entered the market to take advantage of what it considered to be favorable conditions at the time . . . “
Under the original plan, announced in early March, Quintiles said it planned to sell about $2.4 billion in debt – with some $1.7 billion of the total going to retire existing debt, and the rest going for acquisitions, partnerships, dividend payouts and share repurchases.
With that overall plan now on hold, the company says, it has also terminated a tender offer to repurchase $525 million worth of senior notes maturing in 2014 and bearing a coupon rate of 9.5 percent.
“All notes tendered in . . (the offer) will be returned promptly to the respective holders . . .” the company says.
The Quintiles release doesn’t say how long the firm plans to monitor global credit markets or indicate how long the postponement might last.
