Quintiles Transnational Corp. is paying as much 50 percent more for a $300 million loan than on a similar borrowing in June, burdening the company with increased interest costs to fund its second dividend in a year to Bain Capital LLC and TPG Capital.
The biggest provider of testing and drug-trial services to pharmaceutical and biotech firms will pay a fixed 7.5 percent on the five-year credit, according to data compiled by Bloomberg. It pays a minimum 5 percent on a $2 billion floating-rate, seven-year term loan it obtained last year, also used to finance a dividend to its private-equity owners, the data show.
The notes were redeemed in a refinancing last year that consisted of $2.23 billion of loans, Bloomberg data show. The debt, which comprised a $2 billion term loan and a $225 million revolving credit line, was used in part to finance a roughly $300 million distribution to shareholders, according a report from Moody’s in May.