IMS Health plans to use IPO proceeds to redeem PIK and 12½% notes

By Jennifer Chiou

New York, Feb. 14 - IMS Health Holdings, Inc. intends to use a portion of the proceeds from its planned initial public offering of common stock to fund the redemption of all of its $750 million of 7.375%/8 1/8% senior payment-in-kind toggle notes due 2018, $999.6 million of 12½% senior exchange notes due 2018 and $400,000 of 12½% senior notes due 2018, according to an S-1 filing with the Securities and Exchange Commission.

Funding for the redemption will also come from new term loans and cash on the company's balance sheet.

Proceeds from the IPO and new loans will also be used to make a payment to holders of outstanding cash-settled stock appreciation rights granted under IMS' 2010 equity incentive plan and to pay a one-time fee to terminate its management services agreement with the private equity sponsors, TPG Global, LLC, CPP Investment Board Private Holdings, Inc. and Leonard Green & Partners, LP. Any remaining proceeds will be used for general corporate purposes.

The filing stated that certain affiliates of Goldman, Sachs & Co., an underwriter of this IPO, hold a portion of the company's 12½% senior notes, and it is expected that as a result of the refinancing, they will receive more than 5% of the net proceeds of the offering.

IMS is a Danbury, Conn.-based provider of information, services and technology for the health care industry.

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