U.S. Markets closed

IMS Health (IMS) Prices Upsized Offering of Senior Notes

Zacks Equity Research

IMS Health Holdings, Inc. IMS announced the pricing of a senior notes offering worth $1.75 billion. The offering consists of $1.05 billion of U.S. dollar notes and €625 million of euro notes. The notes will be issued by its wholly owned subsidiary, IMS Health Inc.

The $1.05 billion U.S. dollar notes will bear interest at a rate of 5.0% and the €625 million euro notes will bear interest at a rate of 3.5%. Both would pay interest semi-annually in arrears on Apr 15 and Oct 15 of each year beginning on Apr 15, 2017. The U.S. dollar notes will mature on Oct 15, 2026 while the euro notes will mature on Oct 15, 2024.

The offering was upsized from a previously announced $1.5 billion equivalent aggregate principal amount. The net proceeds from the notes offering will primarily go toward the previously announced proposed merger between IMS Health and Quintiles Transnational Holdings Inc. Q.

The merger, originally announced in May, would be named Quintiles IMS Holdings, Inc. Under the terms of the merger agreement, IMS Health shareholders will receive a fixed exchange ratio of 0.384 shares of the Quintiles common stock for each share of the IMS Health common stock. Upon completion of the merger, IMS Health shareholders will own approximately 51.4% of the shares of the combined company and Quintiles shareholders will own approximately 48.6%.
 

Price

Price | Quote

IMS Health is a leading global information and technology services company catering to clients in the healthcare industry.

Zacks Rank & Key Picks
    
Currently, IMS Health Holdings carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader medical sector include RadNet, Inc. RDNT and US Physical Therapy Inc. USPH. Notably, both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
QUINTILES TRANS (Q): Free Stock Analysis Report
 
RADNET INC (RDNT): Free Stock Analysis Report
 
US PHYSICAL THR (USPH): Free Stock Analysis Report
 
IMS HEALTH HLDG (IMS): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research