Kyndryl Holdings enters $3.15 billion revolver, $500 million term loan

By Wendy Van Sickle

Columbus, Ohio, Oct. 22 – Kyndryl Holdings, Inc. entered into a $3.15 billion five-year revolving credit facility and a $500 million term loan on Oct. 18, according to an 8-K filing with the Securities and Exchange Commission.

The revolver expires on Oct. 16, 2026, and the term loan matures on the date that is three years after the funding date.

Kyndryl may draw on the revolver following its legal and structural separation from International Business Machines Corp. The term loan may be drawn up to three business days prior to the anticipated date of the separation.

Borrowings may be used for general corporate purposes.

Term loan borrowings bear interest at Libor plus a margin ranging from 87.5 basis points to150 bps, depending on the borrower’s ratings. The revolver bears interest at Libor plus a margin ranging from 100 bps to 162.5 bps, also depending on ratings.

JPMorgan Chase Bank, NA, Banco Santander, SA, New York Branch, MUFG Bank, Ltd. and TD Securities (USA) LLC are the joint lead arrangers and bookrunners for each tranche. JPMorgan is the administrative agent.

Deutsche Bank AG, New York Branch, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corp., Bank of Nova Scotia and UniCredit Bank AG, New York Branch are the documentation agents. Santander, MUFG and TD Securities are the syndication agents.

The separation of the company is planned by the end of 2021. The new company will be based in New York and will focus on the technology services industry.

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