Teradata inks $300 million five-year revolving credit facility

By Toni Weeks

San Diego, June 20 - Teradata Corp. entered into a $300 million five-year revolving credit agreement on June 15, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The revolver matures on June 15, 2017. Teradata may extend the maturity by up to two additional one-year periods and increase the principal amount by up to $200 million, subject to lender approval.

Borrowings will bear interest at Libor plus 97.5 basis points through June 30. After that, the margin and facility fee will vary based on the company's leverage ratio. A margin of 150 bps and facility fee of 25 bps applies to a leverage ratio greater than or equal to 2.00; a margin of 130 bps and facility fee of 20 bps applies to a leverage ratio of at least 1.50 but less than 2.00; a margin of 107.5 bps and facility fee of 17.5 bps applies to a leverage ratio greater than 1.00 but less than 1.5; and a margin of 97.5 bps and facility fee of 15 bps applies to a leverage ratio of less than 1.00.

The revolving credit facility replaces a similar credit agreement that was entered into in 2007 and terminated last Friday. Borrowings are unsecured but guaranteed by some of Teradata's material domestic subsidiaries.

Bank of America, NA is the administrative agent, letters of credit issuer and swingline lender. JPMorgan Chase Bank, NA is the syndication agent. The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Citibank, NA are co-documentation agents. Bank of America Merrill Lynch and J.P. Morgan Securities LLC are joint lead arrangers and joint bookrunners.

The Dayton, Ohio-based provider of analytic data solutions said it arranged a $300 million term loan in 2011 with the same lenders.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.