IMS launches $100 million delayed-draw loan, sets talk on repricing

By Sara Rosenberg

New York, March 1 - IMS Health Inc. launched a new $100 million delayed-draw term loan on Tuesday and revealed price talk on its U.S and euro term loan repricing, according to a market source.

The delayed-draw loan and $1.25 billion term loan are both being talked at Libor plus 325 basis points with a 1.25% Libor floor and a par offer price, and the €550 million term loan is being talked at Euribor plus 350 bps with a 1.25% to 1.5% base rate floor and a par offer price, the source said.

All tranches include 101 soft call protection for one year.

The delayed-draw loan has a 50 bps ticking fee starting June 1 and rising through Aug. 15.

Proceeds from the delayed-draw loan will be used to fund the acquisition of SDI Health, a privately held healthcare market insights and analytics firm serving the U.S. market.

The acquisition is subject to pre-merger notification requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

The funded U.S. and euro term loans are being used to reprice the existing term debt obtained last year to help fund the buyout of the company by TPG Capital and the CPP Investment Board.

At close, pricing on the $1.25 billion U.S. piece was Libor plus 350 bps and pricing on the €550 million euro piece was Euribor plus 375 bps. Both term loans include a 1.75% floor and were sold at an original issue discount of 99.

Goldman Sachs & Co. is the left lead bank on the deal.

IMS Health is a Norwalk, Conn.-based provider of market intelligence to the pharmaceutical and health care industries.

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