IMS Health Inc., the provider of prescription data that was acquired by TPG Capital and Canada Pension Plan Investment Board, lowered the rate it will pay $2.78 billion of term loans, according to a person with knowledge of the transaction.
The interest rate on a $1.77 billion term loan B, due in 2017, will be reduced to 2.75 percentage points more than the London interbank offered rate and be sold at par, said the person, who asked not to be identified because the information is private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1 percent floor.
The company also reduced the rate it will pay on a 755 million euro-denominated ($1.02 billion) term loan E maturing in 2017 to 3 percentage points more than the euro interbank offered rate with a 1.25 percent floor, according to the person. The term loan E portion will also be sold at par.
Lenders are being offered six months of soft-call protection of 101 cents from the date of the re-pricing, said the person, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first six months.
Bank of America Corp. and Goldman Sachs Group Inc. are arranging the transaction and commitments are due by noon on Jan. 31 in New York, the person said.