Ortho-Clinical Diagnostics to repay debt with proposed IPO proceeds

Ortho-Clinical Diagnostics Inc. filed a Form S-1 with the Securities and Exchange Commission on Jan. 4 for a proposed initial public offering of a yet-to-be-determined size, according to the company filing.

The company intends to use net proceeds from the public stock offering to redeem $160 million in principal of the issuer's $400 million of 7.375% senior unsecured notes due 2025; $270 million of its 7.25% senior unsecured notes due 2028, which have $675 million in aggregate principal outstanding; and a yet-to-be-determined amount under its dollar term loan facility. The issuer currently has a dollar-denominated covenant-lite first-lien term loan due June 2025 (L+325, 0% Libor floor) that is quoted at a 98.875/99.375 level this morning, from around 98.5/99 prior to the S-1 filing.

The company intends to list its shares on the Nasdaq Stock Market under the ticker symbol OCDx.

According to selected financials in the Form S-1, the company reported net revenue of $1.25 billion and adjusted EBITDA of $366.7 million in the nine-month period ended Sept. 27, 2020, compared to $1.33 billion in revenue and $361.6 million in adjusted EBITDA for the comparable nine-month period ended Sept. 29, 2019.

J.P. Morgan is acting as representative for the group of underwriters that also includes BofA Securities, Goldman Sachs, Barclays, Morgan Stanley, Citigroup, Credit Suisse, UBS, Evercore, Piper Sandler, ING, Macquarie, Nomura, TCG Capital Markets, Drexel Hamilton, H.C. Wainwright & Co., Samuel A. Ramirez & Co., and Siebert Williams Shank & Co.

Ortho-Clinical Diagnostics, currently backed by Carlyle, is a U.S.-based provider of in-vitro diagnostic services for screening, diagnosing, and monitoring diseases.