Parexel finalizes $2.7 billion term loan at Libor plus 350 bps

By Sara Rosenberg

New York, Aug. 11 – Parexel set pricing on its $2.7 billion seven-year first-lien term loan (B1/B) at Libor plus 350 basis points, the low end of the Libor plus 350 bps to 375 bps talk, according to a market source.

Also, instead of two 25 bps leverage-based pricing step-downs, the term loan now only has one 25 bps step-down at 4.4x first-lien net leverage, and MFN was changed to 50 bps with a 12-month sunset from 100 bps with a six-month sunset, the source said.

The term loan still has a 0.5% Libor floor, an original issue discount of 99.5, 101 soft-call protection for six months, amortization of 1% per annum, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

The company’s $4.1 billion of credit facilities also include a $500 million revolver (B1/B) and a $900 million privately placed second-lien term loan.

Goldman Sachs Bank USA, Barclays, UBS Investment Bank, Jefferies LLC, BofA Securities Inc., Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., Morgan Stanley Senior Funding Inc., Mizuho and RBC Capital Markets are the bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by EQT and Goldman Sachs Asset Management from Pamplona Capital Management LP for $8.5 billion.

Closing is subject to customary conditions, including receipt of regulatory approvals.

Parexel is a Durham, N.C.-based biopharmaceutical services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.