Clarivate plc (NYSE: CLVT) recently announced the successful completion of an incremental upsize of its term loan B credit facility, in a move to refinance a majority of its senior secured notes due in 2026. Pursuant to an amendment to the company’s existing credit agreement, Clarivate incurred a new $500 million tranche of incremental term loans maturing in 2031, with an interest rate margin of 325 basis points per annum. The new term loans will not be subject to amortization.
The proceeds of the new term loans were used to redeem $500 million aggregate principal amount of the outstanding 4.50% senior secured notes due 2026 originally issued on October 31, 2019. Following the partial redemption, $200 million aggregate principal amount of the notes remain outstanding.
Jonathan Collins, Executive Vice President and Chief Financial Officer of Clarivate, expressed his satisfaction with the improved credit market conditions, stating, "We were pleased to take advantage of improved credit market conditions to successfully extend the majority of our 2026 debt maturity. With our strong cash flow, we continue to have flexibility in our capital allocation moving forward."
This refinancing reflects a strategic financial move by Clarivate to take advantage of improved credit market conditions and extend the maturity of a significant portion of its debt, ultimately contributing to the company's continued financial flexibility and capital allocation. Today the company's shares have moved -0.47% to a price of $4.20. For the full picture, make sure to review CLARIVATE PLC's 8-K report.
