Vertex plans $360 million of incremental debt with Vectrus merger

By Sara Rosenberg

New York, April 27 – Vertex Co. has received a commitment for an up to $260 million incremental term loan and an up to $100 million incremental ABL facility in connection with its merger with Vectrus Inc., according to a PREM14A filed with the Securities and Exchange Commission on Wednesday.

RBC Capital Markets, LLC, Stifel, MUFG and Citizens Bank provided the incremental term loan commitment, and Ally Bank provided the incremental ABL commitment.

Proceeds will be used to help fund the merger, to repay Vectrus’ existing credit facility, to redeem certain preferred stock of Vertex, for working capital and general corporate purposes, and to pay fees and expenses related to the transaction.

Closing is expected in the third quarter.

Vertex is a Madison, Miss.-based defense aerospace company. Vectrus is a Colorado Springs-based military and government services company.

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