PAREXEL International restructures transaction as $475M add-on term loan

Lead arranger BofA Securities has revised the structure and timing of the term loan financing for PAREXEL International Corp., reducing the transaction to a $475 million incremental term loan from the previously proposed $2.3 billion term loan B, according to sources. Commitments are now due by 5 p.m. ET today.

Price talk on the incremental term loan is L+275, with a 0% Libor floor and is offered at an original issue discount of 99.25. At revised talk, the yield to maturity is 3.24%.

Proceeds from the incremental term loan will be used, along with cash on hand, to refinance the issuer's existing 6.375% senior unsecured notes due 2025 and pay related fees and expenses. The notes have $519 million outstanding, according to S&P Global Ratings.

The transaction was originally structured as a $2.3 billion, seven-year term loan that would have also refinance the issuer's existing $1.8 billion TLB due September 2024 (L+300, 0% Libor floor) as well as the senior unsecured notes. Both the term loan and the notes were issued in 2017 to finance the buyout of the company by Pamplona Capital and both were reduced via repayments earlier this month.

Corporate and first-lien ratings are B-/B2, with a 4 recovery rating from S&P Global Ratings. The issuer also has a $300 million revolver.

PAREXEL, backed by Pamplona Capital, is a global biopharmaceutical services company, providing clinical research, consulting, medical communications and technology services to the pharmaceutical, biotechnology and medical-device industries.