Fortrea launches $570 million term loan B at SOFR plus 400-425 bps

By Sara Rosenberg

New York, June 1 – Fortrea launched on Thursday its $570 million seven-year term loan B with price talk of SOFR plus 400 basis points to 425 bps with a 0.5% floor and an original issue discount of 98 to 98.5, according to a market source.

The term loan B has 101 soft call protection for six months and amortization of 1% per annum, the source said.

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.

Commitments are due at noon ET on June 12, the source added.

Proceeds will be used with $570 million of other secured debt 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.

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