RESEARCH TRIANGLE PARK, N.C., Aug. 19 /PRNewswire/ -- Quintiles
Transnational Corp. today announced that its newly formed subsidiary,
Duloxetine Royalty Sub ("Royalty Sub"), intends to issue $150 million of
Duloxetine Secured Notes, plus as much as $50 million to $150 million of
additional notes, depending on market and other conditions. Quintiles expects
to use the net proceeds it will receive from Royalty Sub to repay in full all
outstanding term loans, if any, under Quintiles' existing senior secured
credit facility, for any other purposes permitted under Quintiles' other debt
arrangements and for general corporate purposes.
Payments of principal and interest on the notes will be made solely out of
royalty and other payments to be made under an existing agreement between
Quintiles and Eli Lilly and Company (NYSE: LLY) ("Lilly"). The royalty
payments are based on Lilly's United States sales of Cymbalta(R) (duloxetine
hydrochloride), a selective serotonin and norepinephrine reuptake inhibitor
approved by the U.S. Food and Drug Administration for the treatment of major
depressive disorder and the management of diabetic peripheral neuropathic pain
in adults. Quintiles will sell its rights to the royalty and certain other
payments under the agreement to Royalty Sub, which will purchase the rights
using the net proceeds from the sale of the notes. Royalty Sub will be
responsible for repayment of the notes, and the notes will be non-recourse to
Quintiles. If Quintiles breaches its covenants under the agreement
transferring the royalty and other payment rights to Royalty Sub or in limited
circumstances involving a change of control of Quintiles, Quintiles may be
required to make payments equal to the outstanding principal and interest on
the notes. The notes will not be convertible into Quintiles equity and the
notes will have no warrants.
The notes have not been and will not be registered under the Securities
Act of 1933, as amended, and may not be offered or sold in the United States
absent an applicable exemption from the registration requirements of the
Securities Act of 1933, as amended. This press release shall not constitute
an offer to sell or a solicitation of an offer to buy the notes and is issued
pursuant to Rule 135c under the Securities Act of 1933, as amended.
Quintiles helps improve healthcare worldwide by providing a broad range of
professional services, information and partnering solutions to the
pharmaceutical, biotechnology and healthcare industries. Headquartered near
Research Triangle Park, North Carolina, Quintiles has offices in 50 countries
and is the world's leading pharmaceutical services organization. For more
information visit the company's Web site at http://www.quintiles.com.
Information in this press release contains "forward looking statements."
These statements involve risks and uncertainties that could cause actual
results to differ materially, including but not limited to the possibility
that the notes may not be issued in the full principal amount or at all.
Additional factors that could cause actual results to differ materially are
discussed in Quintiles' recent filings with the Securities and Exchange
Commission, including but not limited to its Annual Report on Form 10-K, its
Form 8-Ks and its other periodic reports, including Form 10-Qs.
SOURCE Quintiles Transnational Corp.
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Related links:
http://www.quintiles.com
CONTACT:
Jay Johnson, Media Relations,
media.info@quintiles.com , or Greg Connors, Investor Relations,
invest@quintiles.com, of Quintiles Transnational Corp.,
+1-919-998-2000
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