XML 43 R21.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Bank Credit Lines, Loan Facilities and Notes | 12 Months Ended
--- | ---
Dec. 31, 2024
Debt Disclosure [Abstract] |
Bank credit lines, loan facilities and notes | Bank credit lines, loan facilities and notes The Company had the following debt outstanding as of December 31, 2024 and December 31, 2023:
|  | Interest rate as of | Principal amount as of
| Maturity Date | December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023
|  |  |  | (in thousands)
Senior Secured Term Loan | July 2028 | 6.329 | % | 7.860 | % | $ | 946,450 |  | $ | 3,251,213 |
Senior Secured Notes (the "2026 Notes") | July 2026 | 2.875 | % | 2.875 | % | 500,000 |  | 500,000 |
Senior Secured Revolving Loan |  | — |  | 6.720 | % | — |  | 55,000 |
Senior Secured Notes (the "2027 Notes")* | May 2027 | 5.809 | % | — |  | 750,000 |  | — |
Senior Secured Notes (the "2029 Notes")* | May 2029 | 5.849 | % | — |  | 750,000 |  | — |
Senior Secured Notes (the "2034 Notes")* | May 2034 | 6.000 | % | — |  | 500,000 |  | — |
Total debt |  |  |  | 3,446,450 |  | 3,806,213 |
Less current portion of debt |  |  |  | (29,762) |  | (110,150) |
Total long-term debt |  |  |  | 3,416,688 |  | 3,696,063 |
Less debt issuance costs and debt discount |  |  |  | (20,290) |  | (30,624) |
Total long-term debt, net |  |  |  | $ | 3,396,398 |  | $ | 3,665,439 |
*Issued May 8, 2024 The Company incurred interest costs from various financing arrangements during the years ended December 31, 2024, December 31, 2023 and December 31, 2022 as set out in the table below. These costs have been charged in the interest expense line of the Consolidated Statement of Operations. In the years ending December 31, 2024, December 31, 2023 and December 31, 2022, the Company expensed $23.5 million, $16.4 million and $17.7 million of transaction related financing costs, inclusive of the amortization of financing fees which were previously capitalized.
| Year ended
| December 31, 2024 | December 31, 2023 | December 31, 2022
| (in thousands)
Interest expense on drawn facilities | $ | 206,198 |  | $ | 311,019 |  | $ | 209,189 |
Amortization of merger related financing fees | 23,533 |  | 16,402 |  | 17,749 |
Other financing costs* | 7,506 |  | 9,278 |  | 2,793 |
Total financing costs | $ | 237,237 |  | $ | 336,699 |  | $ | 229,731 |
*Includes costs associated with the senior secured revolving loan facility. As of December 31, 2024, the contractual maturities of the Company's debt obligations were as follows:
Maturities of debt: |  | (in thousands)
2025 |  |  |  | $ | 29,762 |
2026 |  |  |  | 529,762 |
2027 |  |  |  | 779,762 |
2028 |  |  |  | 857,164 |
2029 and thereafter |  |  |  | 1,250,000 |
Total |  |  |  | $ | 3,446,450 |
The Company's primary financing arrangements are its senior secured credit facilities (the "Senior Secured Credit Facilities"), which consists of a senior secured term loan and a revolving credit facility; the 2026 Notes and the New Notes. The New Notes On May 8, 2024, ICON Investments Six Designated Activity Company (the "Issuer"), a wholly-owned subsidiary of ICON plc, issued $2 billion senior secured notes ("the New Notes"). The New Notes were issued in aggregate principal amounts of: $750 million 5.809% Senior Secured Notes due 2027 (the "2027 Notes"), $750 million 5.849% Senior Secured Notes due 2029 (the "2029 Notes") and $500 million 6.000% Senior Secured Notes due 2034 (the "2034 Notes"). The Company paid an underwriting discount of $6.8 million on the New Notes being: 0.250% of the principal amount of the 2027 Notes, 0.350% of the principal amount of the 2029 Notes and 0.450% of the 2034 Notes. Further, the 2034 Notes were issued at a discount of $0.5 million (issued at 99.896% of par). The proceeds from the issuance were used to repay a portion of the senior secured term loan outstanding under the Senior Secured Credit Facilities and to pay fees, costs and expenses related to the offering. Interest on the New Notes is payable on May 8 and November 8 of each year, having commenced on November 8, 2024. Unless previously redeemed, the 2027 Notes will mature on May 8, 2027, the 2029 Notes will mature on May 8, 2029 and the 2034 Notes will mature on May 8, 2034. The New Notes are guaranteed on a senior secured basis by ICON and its existing and future wholly owned subsidiaries, in each case that guarantee the obligations under our Senior Secured Credit Facilities and the 2026 Notes. The New Notes are the senior secured obligation of the Issuer and the Guarantors and rank equally in right of payment to all of the Issuer’s and Guarantors’ existing and future senior debt and senior in right of payment to all of the Issuer's and Guarantors' existing and future subordinated debt. The New Notes and the guarantees are secured on a first-lien basis by substantially all of the existing and future assets of the Issuer and the Guarantors that also secure the Issuer’s and the Guarantors’ obligations under the Senior Secured Credit Facilities and the 2026 Notes on a pari passu basis, subject to permitted liens, and the liens on the collateral securing the New Notes rank equally in priority with the liens on the collateral securing borrowings and guarantees under the Senior Secured Credit Facilities, the 2026 Notes and any other future pari passu first lien indebtedness. Senior Secured Credit Facilities On July 1, 2021, the Company completed the acquisition of PRA Health Sciences, Inc. ("PRA") by means of a merger whereby Indigo Merger Sub, Inc., a Delaware corporation and subsidiary of ICON, merged with and into PRA, the parent of the PRA Health Sciences ("the Merger"). In conjunction with the completion of the Merger, on July 1, 2021, ICON entered into a credit agreement providing for a senior secured term loan facility of $5,515 million and a senior secured revolving loan facility in an initial aggregate principal amount of $300 million (the "Senior Secured Credit Facilities"). On May 2, 2023, the Company agreed with its lenders to increase the aggregate principal amount of the senior secured revolving loan facility from $300 million to $500 million. The Senior Secured Credit Facilities and the 2026 Notes were issued at a discount of $27.6 million. Borrowings under the senior secured term loan facility amortize in equal quarterly installments in an amount equal to 1.00% per annum of the principal amount, with the remaining balance due at final maturity. The interest rate margin applicable to borrowings under the senior secured term loan facility is USD Term SOFR plus an applicable margin which is dependent on the Company's net leverage ratio. At December 31, 2024, the applicable margin is 2.0% (which reflects the Third Amendment). The senior secured term loan facility is subject to a floor of 0.50%. Reflecting the Third Amendment, the interest rate margin applicable to borrowings under the revolving loan facility will be, at the option of the borrower, either (i) the applicable base rate plus an applicable margin of 0.45%, 0.10% or –% based on the Company’s current corporate family rating assigned by S&P of BB (or lower), BB+ or BBB- (or higher), respectively, or (ii) Term SOFR plus an applicable margin of 1.45%, 1.10%, 0.85%, 0.65%, or 0.50% based on the Company’s current corporate family rating assigned by S&P of BB (or lower), BB+, BBB-, BBB or BBB+ (or higher), respectively. In addition, lenders under the revolving loan facility are entitled to commitment fees as a percentage of the applicable margin at the time of drawing and utilization fees dependent on the proportion of the facility drawn. The Borrowers’ (as defined in the Senior Secured Credit Facility) obligations under the Senior Secured Credit Facilities are guaranteed by ICON and the subsidiary guarantors. The Senior Secured Credit Facilities are secured by a lien on substantially all of ICON’s, the Borrowers’ and each of the subsidiary guarantor’s assets (subject to certain exceptions), and the Senior Secured Credit Facilities will have a first-priority lien on such assets, which will rank pari passu with the lien securing the 2026 Notes and the New Notes subject to other permitted liens. The Company is permitted to make prepayments on the senior secured term loan without penalty. Principal repayments, comprising mandatory and voluntary repayments, during the year ended December 31, 2024 and December 31, 2023 were as follows:
Principal repayments | December 31, 2024 | December 31, 2023
| (in thousands)
Quarter 1 | $ | (275,000) |  | $ | (250,000) |
Quarter 2 | (2,014,882) |  | (150,000) |
Quarter 3 | (7,441) |  | (300,000) |
Quarter 4 | (7,440) |  | (250,000) |
Total repayments | $ | (2,304,763) |  | $ | (950,000) |
The voluntary repayments made during the year resulted in an accelerated charge associated with previously capitalized fees of $16.9 million (December 31, 2023: $7.9 million). During the year ended December 31, 2024, the Company drew down $318.0 million (December 31, 2023: $370.0 million) of the senior secured revolving loan facility and repaid $373.0 million (December 31, 2023: $315.0 million) as shown below. As at December 31, 2024, $nil (December 31, 2023: $55.0 million) was drawn under the senior secured revolving loan facility.
| Drawdown | Repayment | Closing Balance
| (in thousands)
Quarter 1, 2023 | $ | 180,000 |  | $ | (100,000) |  | $ | 80,000 |
Quarter 2, 2023 | 50,000 |  | (80,000) |  | 50,000 |
Quarter 3, 2023 | 75,000 |  | (50,000) |  | 75,000 |
Quarter 4, 2023 | 65,000 |  | (85,000) |  | 55,000 |
Total drawdown / (repayments) in 2023 | 370,000 |  | (315,000) |  |
Quarter 1, 2024 | 50,000 |  | (55,000) |  | 50,000 |
Quarter 2, 2024 | 143,000 |  | (193,000) |  | — |
Quarter 3, 2024 | 50,000 |  | (50,000) |  | — |
Quarter 4, 2024 | 75,000 |  | (75,000) |  | — |
Total drawdown / (repayments) in 2024 | $ | 318,000 |  | $ | (373,000) |  |
2026 Notes In addition to the Senior Secured Credit Facilities, on July 1, 2021, a subsidiary of the Company issued $500 million in aggregate principal amount of 2.875% senior secured notes (the "2026 Notes") in a private offering (the “Offering”). The 2026 Notes will mature on July 15, 2026. Fair Value of Debt The estimated fair value of the Company’s debt was $3,469.2 million at December 31, 2024 and (December 31, 2023: $3,793.5 million). The fair values of the senior secured term loan facility, the 2026 Notes and the New Notes were determined based on Level 2 inputs, which are based on rates at which the debt is traded among financial institutions. The fair value of the senior secured revolving loan facility approximates its carrying value due to the short term duration.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/470/tableOfContent + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration