Parexel Taps $100M for M&A, Debt Reduction
The draw-down of the funds will come July 25 and may be used for "working capital purposes," stock repurchase financing, debt refinancing, or for “general corporate purposes.”
"This private placement will provide Parexel with longer term funding at a low cost. It enables the company to have additional financing flexibility, and will allow us to further expand our business,” Josef von Rickenbach, chairman and CEO of Parexel, said.
Last week, von Rickenbach told us in an exclusive interview that the company had mostly met its needs for technology and consulting expertise. However, CFO James Winschel previously said the company was looking to expand in either the Middle East or Turkey.
The announcement of the influx of funds comes just a few days after Parexel reconfirmed its financial guidance for Q4 of FY 2013, as well as for all of FY 2013, at its annual investor day.
But the stock initially slipped, and has since recovered, after the company also announced that its expectations for FY 2014 were below a number of analysts' estimates.
