Icon plans to raise $2 billion to help fund the planned $12 billion acquisition of PRA Health Sciences.
Icon announced the move this week, revealing that it plans to issue $500 million aggregate principal amount of Senior Secured Notes due 2026 and $1.515 billion aggregate principal amount of Senior Secured Notes due 2028.
The Dublin, Ireland-headquartered trials contractor said it intends to use the proceeds – together with cash on hand and borrowings made under a new credit facilities – to “fund the cash consideration payable by Icon for the merger,” pay off debts, and cover fees associated with the deal.
Icon announced plans to buy PRA in February predicting it would deliver “double-digit accretion in the first full year,” provide annual cost synergies of $150 million and decrease the combined firm’s tax rate to 14%.
At the time, Icon CEO Steve Cutler cited the ability to provide novel trial methodologies as a prompt for the takeover.
“The combined company will create a new paradigm for accelerating clinical research and bringing new medicines and devices to market.
“We will be the leading provider of decentralized and hybrid trial solutions through the integration of our data capabilities, health platforms, and Accellacare site network.”
This was echoed by PRA chief Colin Shanno, who said, “The pandemic accelerated the adoption of mobile health technologies and healthcare intelligence tools – tools that PRA helped develop – at an unprecedented rate.
“The union of PRA and Icon will create an organization that has the people, data and technology to bring those cures to patients faster and more efficiently than ever before.”
The comments about decentralized trials are in keeping with comments made Icon’s recent presentation at the Jefferies’ annual healthcare conference when the firm cited growing demand for such studies as a major driver.
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