Teradata enters $400 million revolving facility, $600 million term loan

By Jennifer Chiou

New York, March 31 – Teradata Corp. entered into an up to $400 million five-year revolving credit facility with Bank of America, NA as administrative agent, according to an 8-K filed with the Securities and Exchange Commission.

The company entered into the agreement on March 25 with JPMorgan Chase Bank, NA as syndication agent and Citibank, NA, HSBC Bank USA, NA, the Bank of Tokyo-Mitsubishi UFJ, Ltd. and U.S. Bank NA as co-documentation agents.

There is a $200 million accordion. All outstanding amounts under the revolver are due and payable on March 25, 2020, unless extended by the two one-year extension options.

Borrowings for the revolver bear interest at Libor plus 110 basis points to 150 bps, depending on leverage.

This revolver replaces the company’s similar $300 million credit agreement dated 2012. That revolver has been terminated.

Teradata also entered into a $600 million term loan agreement with JPMorgan Chase Bank as administrative agent, Bank of America as syndication agent and Citibank, HSBC Bank USA, Bank of Tokyo-Mitsubishi and U.S. Bank as co-documentation agents.

Proceeds from the term loan were used to repay the remaining balance of an existing term loan in the amount of $247.5 million and to pay fees and expenses incurred in connection with the term loan agreement, the filing stated. Remaining proceeds will be used for other general corporate purposes.

The term loan agreement has a $300 million accordion and is payable in quarterly installments, commencing on March 31, 2016 with 1.25% of the initial principal amount due on each of the first eight payment dates, 2.5% of the initial principal amount due on each of the next four payment dates and 5% of the initial principal amount due on each of the next three payment dates after that.

All remaining principal will be due on March 25, 2020.

Borrowings for the term loan bear interest at Libor plus 125 bps to 175 bps, depending on the leverage ratio of Teradata.

The Dayton, Ohio-based borrower provides analytic data services.

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