| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers G > Headlines for Gartner Inc. > News item |
Gartner gets $600 million revolver, $150 million term loan due 2018
By Angela McDaniels
Tacoma, Wash., March 13 - Gartner, Inc. entered into a credit agreement on March 7 that provides for a $150 million term loan and a $600 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.
Both the term loan and revolver mature on March 7, 2018. They may be increased by up to $250 million in the aggregate.
The interest rate is Libor plus 125 basis points to 175 bps, depending on Gartner's leverage ratio. The revolver's commitment fee is 20 bps to 30 bps based on utilization.
The term loan will be repaid in 16 consecutive quarterly installments beginning June 30.
The term loan may be prepaid at any time without penalty or premium other than applicable breakage costs.
Up to $40 million of the revolver may be used for letters of credit.
Wells Fargo Bank, NA and RBS Citizens, NA are the co-syndication agents. HSBC Bank USA, NA, Keybank NA, TD Bank, NA, U.S. Bank NA and Union Bank, NA are the co-documentation agents. JPMorgan Chase Bank, NA is the administrative agent.
The credit agreement contains financial covenants requiring a maximum leverage ratio and a minimum interest expense coverage ratio.
Gartner drew down the entire term loan and $50 million of the revolver and used the proceeds to refinance its existing credit facility, which was terminated. Additional draws will be used for general working capital purposes.
The company said it undertook this refinancing to take advantage of current financing conditions and to obtain greater flexibility through a larger revolver.
The prior facility's interest rate was Libor plus 150 bps to 225 bps, and the revolver was $400 million.
Gartner is a Stamford, Conn.-based provider of research and analysis on information technology, computer hardware, software, communications and related technology industries.
© 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.