Quintiles is resuming its plans to raise more than $2 billion in bank financing.
The Durham, N.C.-based, contract research organization is planning to enter into a new $2.2 billion credit facility, with proceeds from the borrowed funding being used to refinance $1.7 billion in existing debt, including an offer to buy $525 million of 9.5 percent outstanding senior notes that are due in 2014.
The new financing program follows plans that Quintiles drew up in March, when the company said it took advantage of favorable borrowing conditions and reached preliminary terms with lenders for loans totaling $2.43 billion. In addition to the debt refinancing, the loans would also be used for acquisitions and partnerships with pharmaceutical companies. Read her explanation of desparate loans on this article.
But the company later that month postponed the financing plans explaining that the favorable terms were no longer available due to global credit market conditions. The company now says that the bank financing will provide it with more favorable debt terms within “a debt market currently offering attractive terms to companies with strong financial track records.”
The new Quintiles financing comes amid some recent merger and acquisition activity in the space that has kept other CROs, large and small, fairly busy. For example, INC Research last week announced an agreement to buy Kendle International for $232 million.
Other CROs have been adding new capabilities, such as consulting. Earlier Tuesday, PPD (NYSE:PPDI) said it is was expanding its consulting services into four new areas. In January, inVentive Health purchased CRO i3 Research as well as consulting firm Campbell Alliance. In March, Morrisville, North Carolina CRO Clinipace Worldwide purchased Colorado consulting firm Regulus Pharmaceutical Consulting.
Privately-held Quintiles already offers many of those services to pharmaceutical companies. It is CRO industry’s largest firm with more than $3 billion in annual revenue and its offerings include clinical trial work, commercialization and consulting services for pharmaceutical companies. The company has global operations spanning 60 countries.
Here’s a roundup of the latest dealflow and investment news from MassDevice:
- Varian throws $15 million into radiation aiming Augmenix
Varian Medical Systems Inc. (NYSE:VAR) obtained a minority ownership stake in Waltham, Mass.-based Augmenix with a $15 million equity investment in the startup. Palo Alto, Calif.-based Varian is also getting an exclusive option to acquire Augmenix if certain milestones are met. Augmenix’s technology is designed to ensure that radiation therapy aims exclusively on the prostate for cancer treatment, in order to avoid side effects like impotence and incontinence, reports Xconomy.
- MindChild drums up cash for fetal heart monitor
North Andover, Mass.-based MindChild Medical Inc. raised $373,594 of a planned $500,000 funding round, according to a filing with the Securities & Exchange Commission. The equity-based funding was supported by eight unnamed investors.
- WaveTec raises $15.9 million
WaveTec Vision closed its Series D financing, securing $15.9 million. The financing was led by existing investor Versant Ventures, with participation from existing investors Accuitive Medical Ventures and De Novo Ventures. New investor Gund Investment Corporation also participated in the funding. The company’s ORange intraoperative wavefront aberrometer is a patented diagnostic product that allows cataract surgeons to measure refraction during surgery, so they can predict and customize how their patients will see following the procedure.
- Cardiva drums up $7.4 million
Cardiva Medical Inc. raised $7.4 million of a planned $15 million funding round, according to an SEC filing. The equity and options-based financing was supported by 51 unnamed investors. The Sunnyvale, Calif.-based company manufactures drug coated vessel closure devices.
- Life redeems of 3.25% convertible senior notes due 2025
Life Technologies Corp. (NSDQ:LIFE) announced that it has given notice of its intention to redeem all of the outstanding 3.25% Convertible Senior Notes due 2025 on June 15. As of May 6 there was $350 milloin in aggregate principal amount of the 2025 Convertible Notes outstanding. The redemption notice provided includes CUSIP Numbers: 46185RAL4 and 46185RAM2.
- Sorin Group initiates share buy-back program
Sorin Group, (MIL:SRN) (Reuters Code: SORN.MI), a global company in the treatment of cardiovascular diseases, announces the commencement of a share buy-back program, previously authorized by the Shareholders’ meeting of September 14, 2010.
- DaVita Labs lands investments
DaVita Inc. (NYSE:DVA), a provider of kidney care services for those diagnosed with end stage renal disease (ESRD) and chronic kidney disease (CKD), announced the company’s recent investment in DaVita Labs, the diagnostic laboratory servicing both dialysis organizations and physician practices.
- Lantheus completes of exchange offer for 9.750% senior notes due 2017
Lantheus Medical Imaging Inc. announced that it has completed its previously announced offer to exchange up to $150 million in aggregate principal amount of its currently outstanding 9.750% Senior Notes due 2017 for an equal aggregate principal amount of its new 9.750% Senior Notes due 2017that have been registered under the Securities Act of 1933, as amended. The Exchange Offer expired at 5:00 p.m. Eastern Time on May 9, 2011. All of the Initial Notes were submitted for exchange, and the Company has accepted for exchange all the Initial Notes validly tendered and not withdrawn pursuant to the Exchange Offer.
- Wavemark lands $3 million for healthcare RFID
Health-care RFID tech company Wavemark Inc. has taken in $2.8 million of a planned $3 million debt financing round, according to an SEC filing.
- Seventh Sense secures $4.5 million of $10 Million extension of Series A
Seventh Sense Biosystems Inc. secured $4.5 million of a two-tranche $10 million extension of its Series A financing. The funds raised from existing investors, Flagship Ventures, Polaris Venture Partners and Third Rock Ventures, will be used to advance development of the TAP platform, which enables one-step blood collection in a safe, painless and convenient manner.
- Nexstim raises additional equity financing
Nexstim Oy, a medical device company commercializing non-invasive brain diagnostic and therapy technologies, announced that it has obtained an additional equity financing of EUR 2 million, bringing the latest round to EUR 13.4 million. The latest investment was made by new investor Capricorn Health-tech Fund NV (Belgium). Capricorn joins current investors HealthCap, LSP (Life Sciences Partners), Sitra and Finnish Industry Investment Ltd, as well as Lundbeckfond Ventures and Ilmarinen in this round. To date, Nexstim has raised over EUR 30 million.
- CardioDx completes $60 million in equity financing
CardioDx closed a $60 million round of equity financing. New investors Longitude Capital, J.P. Morgan, Acadia Woods Partners, Artiman Ventures, and Bright Capital, the venture arm of RU-COM, participated in the round, which also included the company’s previous investors. CardioDx has a strong track record of funding by leaders in life science investing such as Kleiner, Perkins, Caufield & Byers, Mohr Davidow Ventures, TPG Biotech, Intel Capital, Pappas Ventures, DAG Ventures, Asset Management Group and GE Capital.
- Health IT firm Ability Network raises $20 million
Ability Network Inc., a Minneapolis, Minnesota-based health IT firm formerly known as VisionShare, has raised nearly $20 million, according to a recent regulatory filing. That’s significantly higher than its last funding round, at least according to the U.S. Securities and Exchange Commission. Back in 2005, and under the moniker of VisionShare, the company raised $832,000, writes MedCity News.
- Health data firm Explorys raises $11.5 million series C round
Medical data management firm Explorys has raised an $11.5 million series C round of investment that the company plans to use to double its employment by the end of the year. The round was led by Austin Ventures of Austin, Texas, and Foundation Medical Partners of Connecticut, Explorys CTO Charlie Lougheed said. Follow-on investments in the round came from Sante Ventures and Cleveland Clinic. A Cleveland Clinic spinoff, Explorys has raised $15 million since it was founded in 2009, writes MedCity News.
- Avedro increases funding to $13 million
Avedro Inc. raised $13.3 million of a planned $15.5 million financing, according to a regulatory filing. The filing is the Waltham, Mass.-based laser vision technology company’s second amendment to the financing, which in July 2010 called for a planned $5 million funding, followed by a filing in January to raise that amount to $8 million, writes MassHighTech.
- U-Systems raises $6.5 million
U-Systems Inc. completed $6.5 million funding round. The additional capital came exclusively from existing U-Systems investors and affiliates including iD SoftCapital Group, Lumira Capital, PIIH, Radius Ventures, and Sycamore Ventures.
- Advanced BioHealing readies $200 million IPO
Advanced BioHealing Inc. filed terms of an initial public offering, for which it plans to raise about $200 million. The amended regulatory filing outlined the company’s plan to offer 8.35 million common stock shares, with shareholders selling another 5 million, priced between $14 and $16 per share. If it succeeds in reaching its maximum public offering, Westport, Conn.-based maker of cell-based regenerative skin therapy could bring in $213.6 million, writes MassHighTech.
- Bankrupt Angiotech announces final implementation of plan of compromise or arrangement and closing of exchange offer
Angiotech Pharmaceuticals Inc. announced that, together with certain of its Canadian and United States subsidiaries , it has successfully implemented the second amended and restated plan of compromise or arrangement under the Companies’ Creditors Arrangement Act as previously approved by the Supreme Court of British Columbia on April 6. Consequently, the US$250 million 7.75% senior subordinated notes due 2014 have been cancelled and eliminated in exchange for the issuance of new common shares of Angiotech to the holders of such Subordinated Notes.
- MoMelan completes $3.5 million in Series A financing
MoMelan Technologies, the developer of a device to treat skin disorders by expanding the surface area of skin grafts, has raised $3.5 million, according to the company’s top executive. The Cambridge, Mass.-based firm added KLP Enterprises and Life Science Angels to its existing list of investors, which includes LaunchCapital and Mass Medical Angels, writes Xconomy.