JPMorgan Agents TriNet Credit Agreement Amendment
TriNet announced it entered into an amended and restated credit agreement providing for $650 million of new senior secured credit facilities used to refinance TriNet’s previously outstanding term loans. According to the company’s 8-K, JPMorgan served as administrative agent.
The new facilities include a $375 million term loan A maturing in 2019, a $200 million term loan B maturing in 2017, and a $75 million revolver maturing in 2019.
Pricing on the new term loan A, term loan B and the revolver was set at LIBOR plus 275 basis points with no LIBOR floor, subject, in the case of the term loan A and the revolver, to a total leverage-based pricing grid. The term loan B was issued with 0.5% of original issue discount.
Based on the effective lower interest rate, TriNet estimates that it could save up to approximately $5 million in interest payments through the end of TriNet’s current fiscal year ending December 31, 2014. However, the actual interest savings will vary in part due to actual debt levels as well as fluctuations in market conditions.
“We are pleased that our strong financial performance, balance sheet metrics, and cash flow enabled us to obtain more favorable terms,” said Bill Porter, chief financial officer at TriNet.
TriNet is a provider of a comprehensive human resources solution for small to medium-sized businesses.