DUBLIN - ICON plc (NASDAQ:ICLR), a global provider of outsourced development services to the pharmaceutical, biotechnology, and medical device industries, has announced the pricing of a $2 billion bond offering. The offering includes $750 million 5.809% Senior Secured Notes due 2027, $750 million 5.849% Senior Secured Notes due 2029, and $500 million 6.000% Senior Secured Notes due 2034.
The notes will be issued by ICON’s wholly-owned subsidiary, ICON Investments Six Designated Activity Company, and are set to be guaranteed by ICON and certain of its subsidiaries. These notes will rank equally with the issuer's and guarantors' existing and future senior debt and will be senior to all existing and future subordinated debt.
The offering is expected to close on May 8, 2024, with the net proceeds intended to repay a portion of the senior secured term loans under ICON’s Senior Secured Credit Facilities and to cover the costs associated with the offering.
ICON has filed a registration statement with the U.S. Securities and Exchange Commission (SEC), including a preliminary prospectus supplement for the notes. Prospective investors are encouraged to read these documents, which are available on the SEC website, for more complete information about the issuer and the offering.
The press release contains forward-looking statements based on current expectations and available information, which are not guarantees of future performance. These statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those projected.
ICON, headquartered in Dublin, Ireland, employs approximately 41,150 people across 102 locations in 54 countries as of March 31, 2024. The company specializes in advancing clinical research from molecule to medicine, providing outsourced services to a range of healthcare organizations.
The notes are not intended for sale to retail investors in the European Economic Area or the United Kingdom, as defined under respective regulations. The distribution of this press release and other information about the offering may be restricted by law in certain jurisdictions.
This news is based on a press release statement from ICON plc.
InvestingPro Insights
As ICON plc (NASDAQ:ICLR) announces its significant bond offering, investors and stakeholders may be keen to understand the company's financial health and market performance. According to real-time data from InvestingPro, ICON plc boasts a robust market capitalization of $24.63 billion USD.
The company's P/E ratio stands at a high 35.97, indicating a premium valuation compared to earnings, which is echoed by a slightly elevated PEG ratio of 1.1 for the last twelve months as of Q1 2024, suggesting that the price may be high relative to near-term earnings growth.
Revenue growth figures also present a positive picture, with a 5.29% increase in the last twelve months as of Q1 2024, and a quarterly revenue growth of 5.65% in Q1 2024. These figures demonstrate a consistent upward trajectory in ICON's financial performance.
Moreover, the company has shown a strong return over the last three months, with a 16.59% price total return, and an even more impressive 57.84% return over the past year, according to InvestingPro data.
InvestingPro Tips for ICON plc highlight that analysts are optimistic about the company's future, with eight analysts having revised their earnings upwards for the upcoming period. The company is expected to remain profitable this year, continuing its profitability streak from the last twelve months.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/ICLR. These insights could help investors make more informed decisions, especially in light of the recent bond offering.
For those interested in gaining full access to all the InvestingPro Tips and metrics, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these resources at hand, stakeholders can better assess ICON's market position and the potential impact of the bond offering on the company's financial strategy.
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