KEYW gets downsized $100 million facility to fund Poole purchase

By Toni Weeks

San Diego, Oct. 3 - KEYW Holding Corp. subsidiary KEYW Corp. entered into a downsized $100 million senior credit agreement on Monday with RBC Capital Markets as administrative agent, swingline lender and letter of credit issuer, according to an 8-K filing with the Securities and Exchange Committee.

The company announced on Sept. 12 that it had received a commitment for a $25 million senior secured credit facility.

KEYW Holding is the guarantor for the credit facility, which includes a $60 million term loan and a $40 million revolving credit facility. The revolver includes a $10 million swingline and a $15 million letter-of-credit subfacility. The company may obtain an additional $35 million with the facility's accordion feature.

Borrowings bear interest at Libor plus 200 basis points to 275 bps, with the margin based on the company's senior leverage ratio. There is a commitment fee, which ranges from 25 bps to 50 bps.

The term loan requires principal repayments at the end of each fiscal quarter.

Proceeds of the term loan will be used for the acquisition of Poole & Associates, Inc. and related fees and expenses. According to the filing, the company acquired Poole for $116 million and 794,913 shares of KEYW common stock on Oct. 1.

The revolver and swingline loans may be used solely for ongoing working capital and general corporate purposes, including acquisitions, wheareas the letter of credit will be used solely for payment obligations made in the ordinary course of business.

Citibank, NA is the syndication agent and also a co-lead arranger and joint bookrunner with RBC.

KEYW is a Hanover, Md.-based provider of agile cyber superiority, cybersecurity and geospatial intelligence solutions primarily for U.S. Government intelligence and defense customers. Poole is a Hanover, Md.-based provider of systems and software engineering services to the U.S. intelligence community.

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