Quintiles IMS, a wholly-owned subsidiary of Quintiles IMS Holdings, entered into an amendment to its senior secured credit facility to refinance all of the outstanding term B loans under the credit agreement with an extended and repriced term B loan facility.
Under the refinancing, the upsized and repriced term loan B facility will be in an aggregate principal amount of $3,065 million, comprised of both U.S. dollar-denominated term B loans and euro-denominated term B loans.
The extended term B loans will mature in 2024 and will represent an increase of approximately $600 million from the amount of term B loans currently outstanding.
According to a related 8-K filing, Bank of America served as administrative agent for the transaction. JPMorgan Chase Bank, Barclays Bank, Goldman Sachs Bank USA, HSBC Securities USA, Merrill Lynch, Pierce, Fenner and Smith, and Wells Fargo Securities, acted as joint lead arrangers and joint bookrunners.
The interest rate margin applicable to the term B loans denominated in U.S. dollars bearing interest based on LIBOR was reduced by 0.50% from 2.50% to 2.00% and the interest rate margin applicable to the term B loans denominated in euros bearing interest based on EURIBOR was reduced by 0.75% from 2.75% to 2.00%. For purposes of determining the applicable interest rate for term B loans, both the LIBOR floor and the EURIBOR floor were reduced from 1.00% to 0.75%.
The net proceeds from the notes offering and the refinancing will be used to refinance certain indebtedness of the company, to pay fees and expenses related to the notes offering and the refinancing and for other general corporate purposes, which may include share repurchases, including the repurchase of shares from affiliates and significant shareholders and future acquisitions.
QuintilesIMS is an integrated information and technology-enabled healthcare service provider worldwide, dedicated to helping its clients improve their clinical, scientific and commercial results.