Cognizant gets $1 billion term loan, $750 million unsecured revolver

By Susanna Moon

Chicago, Nov. 20 – Cognizant Technology Solutions Corp. obtained a $1 billion unsecured term loan facility and a $750 million unsecured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into the credit agreement on Thursday with JPMorgan Chase Bank, NA as administrative agent in connection with its acquisition of TZ US Parent, Inc. and TZ US Midco, LLC.

Interest on the loans ranges from Libor plus 75 basis points to 112.5 bps based on the company’s debt ratings. The commitment fee ranges from 6 bps to 12.5 bps.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Barclays are the joint lead arrangers and bookrunners.

Credit Suisse AG and Barclays Bank plc are the syndication agents. Citibank NA, Lloyds Bank plc, Standard Chartered Bank, TD Bank, NA and Royal Bank of Canada are the documentation agents.

The company drew $1 billion under the term loan facility to finance a portion of the acquisition purchase price.

The revolving credit facility will be available for general corporate purposes, the release noted.

Cognizant is a provider of information technology, consulting, and business process outsourcing services based in Teaneck, N.J.

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