Gartner Announces Upsizing and Pricing of its $600 Million 3.625% Senior Notes due 2029

Rhea-AI Summary

Gartner (NYSE:IT) announced the pricing of its upsized offering of $600 million 3.625% Senior Notes due 2029, increasing the original amount by $100 million. Expected to close on June 18, 2021, the offering aims to generate approximately $594 million in net proceeds. These funds will be utilized to repay part of existing term loan borrowings, cover related fees, and for general corporate purposes. The New Notes will be offered to qualified institutional buyers and are not registered under the Securities Act, implying regulatory constraints on their sale.

Positive

• Upsized offering of $600 million indicates strong market demand.
• Expecting to receive approximately $594 million in net proceeds for debt repayment and corporate purposes.

Negative

• No assurance that the proposed offering will be completed, creating potential uncertainty.
• Forward-looking statements highlight risks related to COVID-19 impacting business performance and financial conditions.

Gartner, Inc. (NYSE:IT) (“Gartner,” “we” or “our”) announced the pricing of its upsized offering of $600 million 3.625% Senior Notes due 2029 (the “New Notes”), which represents an increase of $100 million of New Notes from the previously announced amount. Subject to customary closing conditions, Gartner anticipates that the offering of the New Notes will be completed on June 18, 2021 and expects to receive net proceeds of approximately $594 million. Gartner intends to use the net proceeds from the offering of the New Notes (i) to repay a portion of the outstanding borrowings under our existing term loan facility, (ii) to pay related fees and expenses and (iii) the remainder, for general corporate purposes. There can be no assurance that the proposed offering of the New Notes will be completed.

The New Notes will be sold only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States only to non-U.S. persons in accordance with Regulation S under the Securities Act. The New Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any of the New Notes, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

Forward-Looking Statements

Statements contained in this press release regarding the proposed offering, the potential use of proceeds, the redemption and all other statements in this release other than recitation of historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, estimates, uncertainties and other factors that may cause actual results to be materially different, and are currently, or in the future could be, amplified by the COVID-19 pandemic. Such factors include, but are not limited to, the following: market conditions affecting the proposed offering, changes in plans or timing relating to the proposed offering, uncertainty of the magnitude, duration, geographic reach and impact on the global economy of the COVID-19 pandemic; the current, and uncertain future, impact of the COVID-19 pandemic and governments’ responses to it on our business, growth, reputation, projections, prospects, financial condition, operations, cash flows, and liquidity; the adequacy or effectiveness of steps we take to respond to the crisis, including cost reduction or other mitigation programs; our ability to recover potential claims under our event cancellation insurance; the timing of conferences and meetings, in particular our Gartner Symposium/Xpo series that normally occurs during the fourth quarter, as well as the timing of our return to in-person conferences and meetings and willingness of participants to attend; our ability to achieve and effectively manage growth, including our ability to integrate our acquisitions and consummate and integrate future acquisitions; our ability to pay our debt obligations; our ability to maintain and expand our products and services; our ability to expand or retain our customer base; our ability to grow or sustain revenue from individual customers; our ability to attract and retain a professional staff of research analysts and consultants as well as experienced sales personnel upon whom we are dependent; our ability to achieve continued customer renewals and achieve new contract value, backlog and deferred revenue growth in light of competitive pressures; our ability to carry out our strategic initiatives and manage associated costs; our ability to successfully compete with existing competitors and potential new competitors; our ability to enforce and protect our intellectual property rights; additional risks associated with international operations, including foreign currency fluctuations; the U.K.’s exit from the European Union and its impact on our results; the impact of restructuring and other charges on our businesses and operations; cybersecurity incidents; general economic conditions; changes in macroeconomic and market conditions and market volatility (including developments and volatility arising from the COVID-19 pandemic), including interest rates and the effect on the credit markets and access to capital; risks associated with the creditworthiness, budget cuts, and shutdown of governments and agencies; the impact of changes in tax policy and heightened scrutiny from various taxing authorities globally; uncertainty from the expected discontinuance of LIBOR and transition to any other interest rate benchmark; changes to laws and regulations; and other factors described under “Risk Factors” in our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.. Forward-looking statements included herein speak only as of the date hereof and Gartner disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.

Source: Gartner, Inc.
Gartner-IR

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FAQ

What is Gartner's recent bond offering amount?

Gartner announced a bond offering of $600 million in Senior Notes due 2029.

When is Gartner's bond offering expected to close?

The bond offering is anticipated to close on June 18, 2021.

What will Gartner do with the proceeds from the bond offering?

Gartner plans to use the proceeds to repay existing term loan borrowings, pay fees, and for general corporate purposes.

Is Gartner's Senior Notes offering registered under the Securities Act?

No, the New Notes have not been registered under the Securities Act.