Alliant Techsystems sets talk on $1.86 billion facility with launch

By Sara Rosenberg

New York, Oct. 8 - Alliant Techsystems Inc. released price talk on its $1.86 billion senior secured credit facility that launched with a bank meeting on Tuesday, according to sources.

The $600 million five-year revolver, of which $184 million will be drawn, and $1.01 billion five-year term loan A are both talked at Libor plus 200 basis points, and the $250 million seven-year term loan B is talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor and an original issue discount of 991/2, sources said.

The term loan B has 101 soft call protection for six months.

BofA Merrill Lycnh, Bank of Tokyo-Mitsubishi UFJ Ltd., RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., U.S. Bank NA and Wells Fargo Securities LLC are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to fund the acquisition of Bushnell Group Holdings Inc. for $985 million in cash, refinance existing senior term loan and revolving credit facilities, pay fees and expenses and for other general corporate purposes.

Other funds for the transactions will come from $300 million of senior unsecured notes.

Pro forma senior secured leverage is 2 times and total leverage is 3.2 times

Closing is expected in the third or fourth quarter of the company's fiscal year 2014, subject to regulatory approvals and customary conditions.

Alliant Techsystems is an Arlington, Va.-based aerospace, defense, and commercial products company. Bushnell is an Overland Park, Kan.-based designer, marketer and distributor of branded sports optics, outdoor accessories and performance eyewear.

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