Syneos closes $2.15 billion refinancing of term loan A, revolver

By Wendy Van Sickle

Columbus, Ohio, March 28 – Syneos Health, Inc. amended its credit agreement dated Aug. 1, 2017 to increase the existing term A facility by $587.5 million to $1.55 billion and the revolving commitments by $100 million to $600 million, according to an 8-K filing with the Securities and Exchange Commission.

Tuesday’s amendment also extends the maturity date of the revolving and term loans to five years from closing.

Additionally, interest on the revolver was decreased by 25 basis points to Libor plus 150 bps, with a 25 bps step-down upon achievement of certain leverage ratios.

About $187.5 million of the initial term A loan was used to repay part of Syneos’ existing term B loans, and the additional $400 million of new term A loans will be available from time to time and may be funded in multiple draws within nine months of closing to further prepay term B loans and/or redeem, repay, defease or discharge all or a portion of Syneos’ 7½% senior notes due 2024.

JPMorgan Chase Bank, NA, Wells Fargo Securities, LLC, PNC Capital Markets LLC, Bank of America Merrill Lynch and SunTrust Robinson Humphrey, Inc. are the bookrunners and are lead arrangers along with ING Capital LLC, Fifth Third Bank, Regions Capital Markets, KeyBank NA, MUFG Bank, Ltd., Barclays Bank plc, Goldman Sachs Bank USA, TD Securities (USA) LLC, Morgan Stanley Senior Funding, Inc. and Citibank NA.

Wells Fargo, PNC, Bank of America Merrill Lynch, SunTrust Robinson Humphrey and ING Capital are the co-syndication agent.

Fifth Third Bank, Regions Capital Markets, KeyBank, MUFG Bank, Barclays, Goldman Sachs, TD Bank, NA, Morgan Stanley and Citibank are the co-documentation agents.

JPMorgan Chase is the administrative agent.

Syneos must comply with a first-lien leverage ratio of 5x with a single step-down to 4.5x starting with the fiscal quarter ending March 31, 2020.

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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