Feb. 14 (Bloomberg) -- Eresearch Technology Inc., a provider of healthcare research services, is seeking a $220 million term loan to refinance debt, according to a person with knowledge of the transaction.
The debt maturing in May 2018, will pay interest at 4.75 percentage points more than the London interbank offered rate, 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 1.25 percent floor.
Eresearch is proposing to sell the loan at 99 cents to 99.5 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.
Lenders are being offered one-year soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first year, according to the person.
Eresearch will be paying out the 101 call protection in connection with the refinancing, the person said.
Credit Suisse Group AG is arranging the financing and will host a lender meeting Feb. 19 at 1 p.m. in New York with commitments being due March 5, the person said. The debt is rated B1 by Moody’s Investors Service and B+ by Standard & Poor’s.
The company’s existing term loan pays interest at 6.5 percentage points more than Libor with a 1.5 percent floor and was sold to investors at 96 cents, according to data compiled by Bloomberg.
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