inc loanMichael Amato
INC Research Inc., an operator of global clinical-development programs in oncology, pediatrics and other health areas, is seeking to lower the rate it will pay on a $296 million term loan B, according to a person with knowledge of the transaction.
The interest rate on the debt will be reduced to 4.5 percentage points to 4.75 percentage points more than the London interbank offered rate and will 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 1.25 percent floor.
JPMorgan Chase & Co. is arranging the transaction for the Raleigh, North Carolina company and commitments are due by noon on Feb. 1 in New York, the person said.
The company’s existing term loan pays interest at 5.75 percentage points more than Libor, with a 1.25 percent floor, according to data compiled by Bloomberg. The debt was sold to investors at 97 cents on the dollar and was quoted at 102.25 cents on the dollar today, the data show.
David Gill, chief financial officer of INC Research, didn’t immediately respond to an e-mail seeking comment.