Genpact cuts term B to $675 million, ups spread to Libor plus 275 bps

By Sara Rosenberg

New York, June 7 - Genpact International Inc. downsized its term loan B due Aug. 30, 2019 to $675 million from $875 million and increased pricing to Libor plus 275 basis points from Libor plus 250 bps, according to a market source.

As before, the term loan B has a 0.75% Libor floor, an original issue discount of 99½ on new money only, 101 soft call protection for six months and amortization of 1% per annum.

The company's now $925 million senior secured credit facility, down from $1,125,000,000, also includes a $250 million revolver due Aug. 30, 2017 that is priced at Libor plus 250 bps with a par offer price.

Recommitments are due at 5 p.m. ET on Monday, the source added.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Agricole CIB, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt. The funds that were taken out of the term loan B were going to be used for general corporate purposes.

With this transaction, the company is eliminating the financial covenant under the term loan B and revising the restricted payments provision to an unlimited amount when net total leverage is less than 2 times plus $100 million.

Genpact is a Hamilton, Bermuda-based provider of business process management services.

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