Alion Science launches $360 million term loan at Libor plus 400 bps

By Sara Rosenberg

New York, July 13 – Alion Science & Technology Corp. launched on Monday its $360 million four-year first-lien term loan (B1/BB-) with price talk of Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and a financing covenant, the source said.

The company is also getting a $40 million revolving credit facility (Ba1/BB).

UBS Investment Bank and KKR Capital Markets are the leads on the deal.

Commitments are due on July 22, the source added.

Proceeds will be used with cash on hand to refinance an existing first-lien term loan and mezzanine tranche.

Alion, a portfolio company of Veritas Capital, is a McLean, Va.-based provider of advanced engineering, intelligence surveillance and reconnaissance, research development test and evaluation, live virtual and constructive training, electronic warfare, and cybersecurity solutions primarily to U.S. Department of Defense and Intelligence Community customers.

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