Catalent (CTLT) announced that its wholly-owned subsidiary, Catalent Pharma Solutions, has priced an upsized private offering of $650 million 3.5% senior unsecured notes due 2030 at par, which reflects an increase of $200 million from the previous offering size.
Catalent engages in the provision of delivery technologies and development solutions for drugs, biologics, and consumer and animal health products.
The proceeds will be used to finance a portion of the purchase price for the previously announced acquisition of Bettera Holdings, LLC and pay related fees, costs and expenses. Notably, the notes will be guaranteed by all of the wholly-owned U.S. subsidiaries of the operating subsidiary that guarantee its senior secured credit facilities.
The sale of the notes is expected to begin on September 29, 2021, subject to customary closing conditions. (See Catalent stock charts on TipRanks)
On September 15, BofA Securities analyst Derik de Bruin maintained a Buy rating on Catalent and raised the price target to $168 from $160. The new price target implies 18.9% upside potential from current level.
Consensus among analysts is a Strong Buy based on 6 Buys and 1 Hold. The average Catalent price target stands at $153.14, implying upside potential of 8.4% to current levels.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Catalent with 8.4% of investors on Tipranks increasing their exposure to CTLT stock over the past 30 days.
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