Engility sets spreads on term B-1 and term B-2 at high end of talk

By Sara Rosenberg

New York, Feb. 6 – Engility Corp. firmed pricing on its $195 million term loan B-1 due Aug, 12, 2020 at Libor plus 325 basis points, the high end of the Libor plus 300 bps to 325 bps talk, and on its $608 million term loan B-2 due Aug. 12, 2023 at Libor plus 375 bps, the wide end of the Libor plus 350 bps to 375 bps talk, according to a market source.

As before, the term loan B-1 has no Libor floor and a par issue price, and the term loan B-2 has a 1% Libor floor and a par issue price.

Both term loans have 101 soft call protection for six months and a first-lien net leverage covenant.

Amortization on the term loan B-1 is 10% per annum, and amortization on the term loan B-2 is 1% per annum.

Morgan Stanley Senior Funding Inc., KKR Capital Markets LLC, Barclays, SunTrust Robinson Humphrey Inc., Regions Capital Markets, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the joint lead arrangers and joint bookrunners on the $803 million in senior secured term loans.

Proceeds will be used to reprice an existing term loan B-1 due 2020 and an existing term loan B-2 due 2023.

Last year, the term loan B-1 closed at pricing of Libor plus 425 bps with no Libor floor and the term loan B-2 closed at pricing of Libor plus 475 bps with a 1% Libor floor.

Closing on the repricing is targeted for Feb. 13, the source added.

Engility is a Chantilly, Va.-based provider of integrated services for the U.S. government.

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