Fortrea cuts spread on $570 million term loan B to SOFR plus 375 bps

By Sara Rosenberg

New York, June 12 – Fortrea reduced pricing on its $570 million seven-year term loan B to SOFR plus 375 basis points from talk in the range of SOFR plus 400 bps to 425 bps and added a 25 bps step-down at 3.2x first-lien net leverage, according to a market source.

Also, the original issue discount on the term loan B firmed at 98.5, the tight end of the 98 to 98.5 talk, the source said.

The term loan B still has a 0.5% floor, 101 soft call protection for six months and amortization of 1% per annum.

The company’s $1.52 billion of credit facilities (Ba3/BB/BB+) also include a $450 million revolver and a $500 million term loan A.

Goldman Sachs Bank USA, Barclays, BofA Securities Inc., Citigroup Global Markets Inc., JPMorgan Chase Bank, MUFG, PNC Bank and Wells Fargo Securities LLC are the arrangers on the deal.

Recommitments were scheduled to be due at noon ET on Monday, the source added.

Proceeds will be used with $570 million of senior secured notes to fund the spinoff of the company from LabCorp, under which Fortrea will make an expected $1.605 billion cash distribution to LabCorp as partial consideration for the assets that will be contributed in the spinoff.

Closing is expected mid-year, subject to certain customary conditions.

Fortrea is a Durham, N.C.-based contract research organization providing comprehensive phase I through IV biopharmaceutical product and medical devices services.

© 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.