IQVIA Announces Upsizing of its Allocation of New Term B Loans

Rhea-AI Summary

IQVIA Holdings Inc. (NYSE:IQV) announces allocation of a new term B loan due 2031 of approximately $1,500 million, upsized due to lender demand. The loan, along with senior secured notes, will be used to repay existing loans and related fees. The Company also entered into a cross-currency swap agreement to hedge exposure to USD-denominated indebtedness, resulting in an effective net borrowing rate of 4.9015%.

Positive

• The allocation of the new term B loan and the cross-currency swap agreement demonstrate the Company's proactive approach to managing its debt and optimizing its borrowing costs.

Negative

• None.

INNOVATION PARK, N.C.--(BUSINESS WIRE)-- IQVIA Holdings Inc. (NYSE:IQV) (the “Company”) today announced that its wholly-owned subsidiary, IQVIA Inc. (the “Borrower”), allocated a new term B loan due 2031 of approximately $1,500 million (the “New Term Loan B”), which was upsized due to lender demand.

The proceeds from the New Term Loan B, together with the proceeds from the Borrower’s offering of $1,250 million in aggregate principal amount of senior secured notes due 2029 (the “Notes”), are expected to be used to repay the outstanding Euro-denominated term B loan (“TLB”) due in March 2024, the U.S.-denominated TLB due in January 2025 and the U.S.-denominated TLB due in June 2025 under the Borrower’s senior secured credit facilities, and to pay fees and expenses related to the Borrower’s Notes offering and the Borrower’s credit agreement amendment in respect of the New Term Loan B.

In connection with the allocation of the New Term Loan B, the Company entered into a cross-currency swap agreement which will effectively convert the New Term Loan B, upon the closing of such facility, into a euro-denominated borrowing at prevailing euro interest rates to hedge exposure to USD-denominated indebtedness created by the New Term Loan B. The effective net borrowing rate to the Company will be 4.9015%, inclusive of the yield on the New Term Loan B and the beneficial impact of the cross-currency swap.

About IQVIA

IQVIA (NYSE:IQV) is a leading global provider of advanced analytics, technology solutions, and clinical research services to the life sciences industry. IQVIA creates intelligent connections across all aspects of healthcare through its analytics, transformative technology, big data resources and extensive domain expertise. IQVIA Connected Intelligence™ delivers powerful insights with speed and agility — enabling customers to accelerate the clinical development and commercialization of innovative medical treatments that improve healthcare outcomes for patients. With approximately 87,000 employees, IQVIA conducts operations in more than 100 countries.

IQVIA is a global leader in protecting individual patient privacy. The company uses a wide variety of privacy-enhancing technologies and safeguards to protect individual privacy while generating and analyzing information on a scale that helps healthcare stakeholders identify disease patterns and correlate with the precise treatment path and therapy needed for better outcomes. IQVIA’s insights and execution capabilities help biotech, medical device and pharmaceutical companies, medical researchers, government agencies, payers and other healthcare stakeholders tap into a deeper understanding of diseases, human behaviors and scientific advances, in an effort to advance their path toward cures.

Forward Looking Statements

Certain statements in this press release are forward-looking statements. These statements involve a number of risks, uncertainties and other factors, including the failure to execute the Credit Agreement Amendment and potential changes in market conditions that could cause actual results to differ materially. There can be no guarantee that the Credit Agreement Amendment will be entered into or that the New Term Loan B will be obtained on the anticipated terms or at all.

IQVIAFIN

View source version on businesswire.com: https://www.businesswire.com/news/home/20231117662635/en/

Nick Childs, IQVIA Investor Relations (nick.childs@iqvia.com)

+1.973.316.3828

Source: IQVIA Holdings Inc.

FAQ

What is the purpose of the new term B loan and senior secured notes?

The new term B loan and senior secured notes will be used to repay existing loans and related fees.

What is the effective net borrowing rate to the Company?

The effective net borrowing rate to the Company will be 4.9015%, inclusive of the yield on the new term B loan and the beneficial impact of the cross-currency swap.

Why did the Company enter into a cross-currency swap agreement?

The Company entered into a cross-currency swap agreement to effectively convert the new term B loan into a euro-denominated borrowing at prevailing euro interest rates, hedging exposure to USD-denominated indebtedness.

What is the total amount of the new term B loan?

The new term B loan is approximately $1,500 million.

How will the proceeds from the new term B loan and senior secured notes be used?

The proceeds will be used to repay outstanding Euro-denominated and U.S.-denominated term B loans, as well as to pay fees and expenses related to the notes offering and credit agreement amendment.