Narrative
Full Description
Project narrative
On November 6, 2018, financial close was reached on a deal in which a syndicate of 29 banks — including Bank of China — entered into a $2.5 billion USD syndicated loan agreement with Cognizant Technology Solutions Corporation and its subsidiary, Cognizant Worldwide Limited. Cognizant is a U.S.-based multinational IT services and consulting company, with operations worldwide. The loan was divided into two tranches: a $750 million USD term loan and a $1.75 billion USD revolving credit facility. The maturity of the loan is 5 years, and the interest rate is LIBOR plus an applicable margin. The proceeds were used by the borrower for refinancing existing indebtedness and general corporate purposes. While Bank of China contributed to this loan (Record ID#109172), the following lenders also participated: JPMorgan Chase Bank, N.A., Barclays Bank PLC, Branch Banking and Trust Company, BNP Paribas, Royal Bank of Canada, Credit Suisse AG (Cayman Islands Branch), HSBC Bank USA, National Association, Santander Bank, N.A., Standard Chartered Bank, SunTrust Bank, TD Bank, N.A., U.S. Bank National Association, Wells Fargo Bank, N.A., Bank of America, N.A., Citibank, N.A., Credit Agricole Corporate and Investment Bank, DBS Bank Ltd., KeyBank National Association, Lloyds Bank Corporate Markets plc, PNC Bank, National Association, Société Générale, The Bank of New York Mellon, MUFG Bank, Ltd., KBC Bank NV (New York Branch), Mizuho Bank, Ltd., The Bank of Nova Scotia, Sumitomo Mitsui Banking Corporation, and The Northern Trust Company. On October 6, 2022, Cognizant Technology Solutions Corporation and Cognizant Worldwide Limited signed a new syndicated loan agreement with a similar structure to refinance and replace the 2018 facility. The new agreement maintained the $2.5 billion USD total, comprised of a $750 million USD term loan and a $1.75 billion USD revolving credit facility. The maturity remained at 5 years, and the interest rate was SOFR plus an applicable margin. The proceeds were used for refinancing existing indebtedness and general corporate purposes. While Bank of China contributed to this loan (Record ID#109173), the following lenders also participated: JPMorgan Chase Bank, N.A., Bank of America, BNP Paribas, TD Bank, Truist Bank, Royal Bank of Canada, The Bank of Nova Scotia, Standard Chartered Bank, U.S. Bank, PNC Bank, HSBC Bank, Credit Agricole Corporate and Investment Bank, Citibank, Société Générale, The Bank of New York Mellon, Banco Santander S.A., Huntington National Bank, Citizens Bank, N.A., MUFG Bank, KBC NV, Sumitomo Mitsui Banking Corporation, and HSBC UK Bank.
Staff comments
1. The entirety of the 2018 loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/1058290/000120677418003148/ctsh3496651-ex101.htm. The dropbox link is accessible here: https://www.dropbox.com/scl/fi/axj5l7xmi1b4brrqb7ipa/Source_ID_221882.pdf?rlkey=4q4aqwzjb8amrwjiza42cmvv8&st=nyae9e16&dl=0 2. Cognizant Technology Solutions Corporation is an American multinational corporation that provides IT services, including digital, technology, consulting, and operations services. Headquartered in Teaneck, New Jersey, it is part of the NASDAQ-100 and trades under CTSH. 3. AidData estimates the interest rate by adding the 6-month average LIBOR rate in November 2018 and an applicable margin based on the company's leverage ratio (0.875%). 4. The individual contributions of the 29 lenders to this $2.5 billion USD syndicated loan are unknown. For the time being, AidData has estimated the contribution of Bank of China by assuming that each lender contributed an equal amount ($86206896.5517 USD) to the loan syndicate.