Medidata gets $100 million term loan, $400 million revolving facility

By Tali Rackner

Minneapolis, Dec. 29 – Medidata Solutions, Inc. entered into a $500 million senior secured first-lien credit facility on Dec. 21 with HSBC Bank USA, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility includes $100 million of term loans and up to $400 million of revolving commitments. Up to $10 million of the revolving commitments may be used for letters of credit.

The credit facility matures on Dec. 21, 2022, and features an up to $100 million accordion option.

Interest is equal to Libor plus 112.5 basis points to 175 bps, depending on Medidata’s total net leverage ratio. Initially, interest is Libor plus 137.5 bps.

The commitment fee ranges from 15 bps to 25 bps, also based on leverage. At closing, the commitment fee was 20 bps.

At closing, the company used term loan proceeds to fund cash on hand to be used for general corporate purposes. It will use future revolver borrowings, if any, for working capital and general corporate purposes.

HSBC Securities (USA) Inc., Bank of the West, JPMorgan Chase Bank, NA, Bank of America Merrill Lynch and PNC Bank, NA acted as joint lead arrangers on the facility with HSBC Securities as bookrunner.

Bank of the West, Bank of America, NA, JPMorgan and PNC acted as documentation agents with MUFG and Silicon Valley as syndication agents.

Medidata is a New York-based company that provides cloud-based clinical development services for life sciences organizations.

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