Credit Arrangements

9 Months Ended

Sep. 30, 2021

The following is a summary of the Company’s revolving credit facilities as of September 30, 2021:


Facility						Interest Rates
$1,500 million (revolving credit facility)						LIBOR in the relevant currency borrowed plus a margin of 1.25% as of September 30, 2021
$110 million (receivables financing facility)						LIBOR Market Index Rate (0.08% as of September 30, 2021) plus 0.90%
£10 million (approximately $14 million) (general banking facility)						Bank’s base rate of 0.10% as of September 30, 2021 plus 1%

The following table summarizes the Company’s debt at the dates indicated:


(in millions)	September 30, 2021		December 31, 2020
Senior Secured Credit Facilities:
Term A Loan due 2023—U.S. Dollar	$	—	$	728
Term A Loan due 2023—U.S. Dollar	—		766
Term A Loan due 2026—U.S. Dollar LIBOR at average floating rates of 1.33%	1,433		—
Term A Loan due 2023—Euro	—		400
Term A Loan due 2026—Euro LIBOR at average floating rates of 1.25%	363		—
Term B Loan due 2024—U.S. Dollar LIBOR at average floating rates of 1.85%	510		535
Term B Loan due 2024—Euro LIBOR at average floating rates of 2.00%	1,269		1,413
Term B Loan due 2025—U.S. Dollar LIBOR at average floating rates of 1.85%	670		726
Term B Loan due 2025—U.S. Dollar LIBOR at average floating rates of 1.90%	860		926
Term B Loan due 2025—Euro LIBOR at average floating rates of 2.00%	605		697
5.0% Senior Notes due 2027—U.S. Dollar denominated	1,100		1,100
5.0% Senior Notes due 2026—U.S. Dollar denominated	1,050		1,050
2.875% Senior Notes due 2025—Euro denominated	487		515
3.25% Senior Notes due 2025—Euro denominated	—		1,748
2.25% Senior Notes due 2028—Euro denominated	834		883
2.875% Senior Notes due 2028—Euro denominated	824		872
1.750% Senior Notes due 2026—Euro denominated	637		—
2.250% Senior Notes due 2029—Euro denominated	1,043		—
Receivables financing facility due 2022—U.S. Dollar	—		240
Receivables financing facility due 2024—U.S. Dollar LIBOR at average floating rates of 0.98%	550		—
Principal amount of debt	12,236		12,600
Less: unamortized discount and debt issuance costs	(64)		(67)
Less: current portion	(91)		(149)
Long-term debt	$	12,081	$	12,384

Contractual maturities of long-term debt are as follows as of September 30, 2021:


(in millions)
Remainder of 2021	$	23
2022	91
2023	91
2024	2,419
2025	2,714
Thereafter	6,898
	$	12,236

As of September 30, 2021, there were bank guarantees totaling approximately £0.8 million (approximately $1.0 million) issued against the availability of the general banking facility.

Senior Secured Credit Facilities

On August 25, 2021, we entered into Amendment No. 9 (the “Amendment”) to the Company’s Fourth Amended and Restated Credit Agreement (the “Prior Credit Agreement,” and together with the Amendment, the "Fifth Amended and Restated Credit Agreement") to (i) extend the maturity of our revolving credit facility to 2026, (ii) refinance our existing term A loans with a new class of term A loans that mature in 2026 and (iii) add IQVIA RDS Inc. as a borrower under the senior secured credit facilities. In connection with this Amendment, we recognized a $1 million loss on extinguishment of debt, which includes fees and related expenses.

As of September 30, 2021, the Fifth Amended and Restated Credit Agreement provided financing through several senior secured credit facilities (collectively, the “senior secured credit facilities”) of up to approximately $7.2 billion, which consisted of $5.7 billion principal amounts of debt outstanding (as detailed in the table above), and $1.5 billion of available borrowing capacity on the revolving credit facility and standby letters of credit.

On September 14, 2021, we repaid $250 million of our term B loans under the senior secured credit facilities using the proceeds from the increased loans under our receivables financing facility.

Receivables Financing Facility

On August 13, 2021, the Company amended its receivables financing facility (the “Receivables Amendment”) to extend the term of the facility to October 1, 2024 and to increase the size of the facility to $550 million from $300 million. Under the receivables financing facility, certain of our accounts receivable are sold on a non-recourse basis by certain of our consolidated subsidiaries (each, an “Originator”) to another of our consolidated subsidiaries, a bankruptcy-remote special purpose entity (the “SPE”). The SPE obtained a term loan and revolving loan commitment from a third-party lender, secured by liens on the assets of the SPE, to finance the purchase of the accounts receivable, which includes a $440 million term loan and a $110 million revolving loan commitment. Pursuant to the Receivables Amendment, we also added three additional subsidiaries as Originators. As of September 30, 2021, no additional amounts of revolving loans were available under the receivables financing facility.

Senior Notes

On March 3, 2021, IQVIA Inc. (the “Issuer”), a wholly owned subsidiary of the Company, completed the issuance and sale of €1,450,000,000 in gross proceeds of the Issuer's (i) €550,000,000 aggregate principal amount of its 1.750% Senior Notes due 2026 (the “2026 Notes”) and (ii) €900,000,000 aggregate principal amount of its 2.250% Senior Notes due 2029 (the “2029 Notes” and, together with the 2026 Notes, the “Notes”). The Notes were issued pursuant to an Indenture, dated March 3, 2021, among the Issuer, U.S. Bank National Association, as trustee of the Notes, and certain subsidiaries of the Issuer as guarantors. The 2026 Notes are unsecured obligations of the Issuer, will mature on March 15, 2026 and bear interest at the rate of 1.750% per year, with interest payable semi-annually on March 15 and September 15 of each year, beginning on September 15, 2021. The 2029 Notes are unsecured obligations of the Issuer, will mature on March 15, 2029 and bear interest at the rate of 2.250% per year, with interest payable semi-annually on March 15 and September 15 of each year, beginning on September 15, 2021. The Issuer may redeem (i) the 2026 Notes prior to their final stated maturity, subject to a customary make-whole premium, at any time prior to March 15, 2023 (subject to a customary “equity claw” redemption right) and thereafter subject to a redemption premium declining from 0.875% to 0.000% and (ii) the 2029 Notes prior to their final stated maturity, subject to a

customary make-whole premium, at any time prior to March 15, 2024 (subject to a customary “equity claw” redemption right) and thereafter subject to a redemption premium declining from 1.125% to 0.000%. The Issuer may choose to redeem the 2026 Notes and the 2029 Notes, either together or separately, on a non-ratable basis. The proceeds from the Notes offering were used to redeem all of the Issuer’s outstanding 3.250% senior notes due 2025 (the “3.250% Notes”), including the payment of premiums in respect thereof and to pay fees and expenses related to the Notes offering. On February 16, 2021, the Issuer issued a conditional notice of redemption with respect to the 3.250% Notes, for a total redemption price equal to the sum of the principal amount of the 3.250% Notes, accrued and unpaid interest on the 3.250% Notes to the redemption date and the applicable redemption premium. The Issuer’s obligations with respect to the 3.250% Notes were discharged on the same day as the Issuer completed the issuance of the Notes.

Restrictive Covenants

The Company’s debt agreements provide for certain covenants and events of default customary for similar instruments, including a covenant not to exceed a specified ratio of consolidated senior secured net indebtedness to Consolidated EBITDA, as defined in the senior secured credit facility agreement and a covenant to maintain a specified minimum interest coverage ratio. If an event of default occurs under any of the Company’s or the Company’s subsidiaries’ financing arrangements, the creditors under such financing arrangements will be entitled to take various actions, including the acceleration of amounts due under such arrangements, and in the case of the lenders under the revolving credit facility and term loans, other actions permitted to be taken by a secured creditor. The Company’s long-term debt arrangements contain other usual and customary restrictive covenants that, among other things, place limitations on the Company’s ability to declare dividends. As of September 30, 2021, the Company was in compliance in all material respects with the financial covenants under the Company’s financing arrangements.