SRA International to launch $415 million notes offering July 4 week

By Paul A. Harris

Portland, Ore., June 24 - SRA International Inc. is expected to launch a $415 million offering of senior notes during the week after July 4, according to market sources.

Bank of America Merrill Lynch will lead a syndicate of banks in bringing the deal to the market.

The notes are backed by a commitment for a $415 million senior unsecured interim loan with pricing of Libor plus 725 basis points with a 1.25% Libor floor, increasing to a specified cap.

The Fairfax, Va.-based technology and consulting services company is in the market with a $975 million credit facility being helmed by Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Goldman Sachs & Co.

Proceeds will be used to help fund the buyout of the company by Providence Equity Partners for $31.25 in cash per share of common stock for a total value of $1.88 billion.

Other funds for the transaction will come from contributions of equity and shares of SRA common stock contributed by the rollover investor to the holding company immediately prior to the merger totaling about $150 million.

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