- Clarivate (CLVT, Financial) secures a $500 million term loan maturing in 2031 to refinance existing debt.
- The refinancing has extended the maturity of the majority of Clarivate's 2026 senior secured notes.
- $200 million of the 2026 notes remain outstanding, requiring future action.
Clarivate Plc (CLVT), a prominent global provider of transformative intelligence, announced the successful refinancing of a significant portion of its debt structure. The company has secured a new $500 million term loan B facility, which matures in 2031. This strategic move has allowed Clarivate to redeem $500 million of its 4.50% senior secured notes initially due in 2026. The remaining $200 million of these notes are still outstanding.
The newly obtained loan carries an annual interest rate margin of 325 basis points referenced to the term SOFR and does not require amortization. By extending the maturity of its debts, Clarivate aims to enhance its financial stability. This refinancing move reflects the company's strategy to capitalize on improved credit market conditions while maintaining strong cash flow and flexibility in capital allocation.
Clarivate's CFO, Jonathan Collins, expressed satisfaction with the transaction, highlighting the company's robust cash flow position and ongoing capital allocation flexibility. This refinancing aligns with Clarivate's broader financial strategy while positioning it favorably for future market conditions.
For more detailed insights into Clarivate’s financial strategies and capabilities, stakeholders can visit the company’s website or consult their public filings with the SEC for further information.
