Gartner launches $400 million term A, $975 million term B to investors

By Sara Rosenberg

New York, March 6 – Gartner Inc. held a bank meeting on Monday to launch $1,375,000,000 in term loans, according to a market source.

J.P. Morgan Securities LLC and Goldman Sachs Bank USA are the lead arrangers and bookrunners on the deal.

The debt consists of a $400 million incremental term loan A and a $975 million term loan B, the source said.

Pricing on the incremental term loan A is Libor plus 250 basis points, subject to a leverage-grid, with a 0% Libor floor.

Price talk on the term loan B is Libor plus 250 bps with a 0% Libor floor and an original issue discount of 99.5, the source continued.

The term loan B has 101 soft call protection for six months.

Proceeds will be used to help fund the acquisition of CEB Inc. for $54.00 in cash and 0.2284 of a share of Gartner common stock for each share of CEB common stock it owns, implying 70% cash and 30% stock consideration for the offer.

The transaction has a total enterprise value of about $3.3 billion, including the assumption of about $700 million in CEB net debt.

Closing is expected in the first half of this year, subject to the approval of CEB shareholders, regulatory approvals and customary conditions.

Gartner is a Stamford, Conn.-based information technology research and advisory company. CEB is an Arlington, Va.-based best practice insight and technology company.

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