ERT reduces pricing on $495 million term loan to Libor plus 500 bps

By Sara Rosenberg

New York, April 12 – ERT (eResearchTechnology Inc.) trimmed pricing on its $495 million seven-year covenant-light first-lien term loan to Libor plus 500 basis points from talk of Libor plus 525 bps to 550 bps, according to a market source.

In addition, the original issue discount on the term loan was tightened to 99 from 98, and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 1% Libor floor.

The company’s $540 million credit facility (B1/B) also includes a $45 million five-year revolver.

Recommitments were due at 2 p.m. ET on Tuesday, the source added.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are the lead banks on the debt.

Proceeds will be used to help fund the buyout of the company by Nordic Capital Fund VIII from Genstar Capital.

Other funds for the transaction will come from $220 million of privately placed second-lien financing and equity.

Closing is expected in the second quarter, subject to regulatory approvals and customary conditions.

ERT is a Philadelphia-based provider of patient data collection solutions for use in clinical drug development.

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