Arabian Business.com reported:
Hellman & Friedman LLC and Carlyle Group LP are seeking to take as much as $1.35 billion of cash out of drug research company Pharmaceutical Product Development LLC.Affordable healthcare is the public's biggest worry and has been for decades. Private equity underwriters are ubiquitous in healthcare and have added significant costs to the system.
The firm’s private equity owners are seeking approval from some of PPD’s creditors for the dividend plan, according to people familiar with the matter. To fund the payment, PPD is mulling the sale of a risky type of junk bond called PIK toggle that allows a borrower to delay interest payments, said the people, asking not to be identified discussing a private matter.
The plan to take cash out of PPD - one of the largest providers of outsourced clinical research whose clients have included GlaxoSmithKline Plc and Pfizer - comes at a particularly turbulent time for the health care sector.
In this case, the debt would be issued by PPD’s holding company, ranking it below most of PPD’s existing borrowings and one step further removed from the company’s assets, the people familiar said.
Carlyle Group and Hellman & Friedman acquired PPD in 2011, in a deal valued at $3.9 billion. The Abu Dhabi Investment Authority and Singapore’s sovereign wealth fund GIC joined as minority investors in 2017 as part of a recapitalisation that valued the company at more than $9 billion.Greed lives and elected officials cater to the PEU boys and their insatiable longing for more money, power and influence. What's another $1 billion among friends?
Update 4-30-19: Pitchbook ran a piece on the proposed $1.4 billion dividend Carlyle plans to suck out of PPD.
(PEU Report noted Carlyle's original purchase of PPD and it's strange 2017 deal. Other PEU PPD pieces can be found here.)
