IQVIA Inc., a wholly-owned subsidiary of IQVIA Holdings Inc. announced that it has placed approximately $1.65 billion of USD and EUR term B loans.
Accoring to an 8K filing, Bank of America, N.A. served as administrative agent and as collateral agent. The loans are comprised of USD term B loans of $950 million due 2025, priced at LIBOR plus a margin of 175 basis points, which represents a 25 basis point margin improvement compared to IQVIA Inc.’s existing USD term B loans.EUR term B loans of approximately $700 million due 2025, priced at EURIBOR plus a margin of 200 basis points, consistent with IQVIA Inc.’s existing EUR term B loans. The EUR term B loans have a floor of 50 basis points, which represents a 25 basis point improvement compared to IQVIA Inc.’s existing EUR term B loans.
The proceeds of the additional term B loans were used to pay down IQVIA Inc.’s revolving credit facility, refinance $650 million of existing USD term B loans due 2024 and to pay fees and expenses in connection with the transactions.
In addition, IQVIA Inc. entered into Amendment No. 4 to its Fourth Amended and Restated Credit Agreement. Pursuant to the amendment, IQVIA Inc. and its lenders agreed to the transactions described above, and also agreed to amend the terms of IQVIA Inc.’s existing USD and EUR term A loans (the “Term A Loans”) aggregating approximately $1.27 billion to (i) extend the maturity of the Term A Loans from 2021 to 2023, (ii) reduce the interest rate margin applicable to the Term A Loans from the current 225 basis points to 175 basis points, and (iii) revise the amortization schedule of the Term A Loans. Finally, IQVIA Inc. and its lenders agreed to amend the terms of the existing revolving credit facility to (i) extend the maturity of the revolving credit facility from 2021 to 2023 and (ii) reduce the interest rate margin applicable to the loans under the revolving credit facility from the current 225 basis points to 175 basis points. The pricing of both the Term A Loans and the revolving credit facility are subject to adjustment in the future based on the IQVIA Inc.’s total net leverage ratio. The Amendment with respect to the Term A Loans and the revolving credit facility is expected to become effective on June 13, 2018, subject to customary closing conditions.