Syneos Health eyes $2.15 billion refinancing of term loan A, revolver

By Wendy Van Sickle

Columbus, Ohio, March 19 – Syneos Health, Inc. said it is working with its lenders on a five-year $2.15 billion refinancing of its existing term loan A and revolving credit facilities that it expects to close by the end of the month.

The company anticipates that the refinancing facilities will comprise $1.15 billion of term A loans to be funded at close, $400 million of delayed-draw term A loans and a $600 million revolver.

About $187.5 million of the initial term loans will be used to repay part of Syneos’ existing term B loans, according to a press release.

The delayed-draw loans are expected to be able to be funded in multiple draws within nine months of closing, the proceeds of which will be applied in the fourth quarter of 2019 to redeem, repay, defease or discharge all or a portion of the company’s 7˝% senior unsecured notes due 2024.

Syneos expects the transactions to reduce its interest expense by $4.2 million for 2019 and by $15 million annually thereafter.

During the three months ended Dec. 31, the company said it voluntarily repaid an additional $30 million to reduce its outstanding debt.

Syneos, the company formed through the combination of INC Research and inVentiv Health, is a Morrisville, N.C.-based biopharmaceutical solutions provider.

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