KeyW Holding plans $135 million term loan for Sotera purchase

By Sara Rosenberg

New York, March 9 – KeyW Holding Corp. has received a commitment for a $135 million five-year term loan to help fund its acquisition of Sotera Defense Solutions, according to an 8-K filed with the Securities and Exchange Commission late Wednesday.

RBC Capital Markets is the lead bank on the deal.

Under the agreement, Sotera is being bought from Ares Management LP in an all-cash transaction valued at about $235 million, inclusive of an expected $46 million net present value of acquired tax benefits.

Other funds for the transaction will come from cash on hand.

Total net debt will be 4.4 times.

On a pro-forma basis, the combined company is expected to generate around $535 million in revenue and more than $55 million in adjusted EBITDA in 2017 before synergies.

Closing is expected in the second quarter, subject to customary conditions.

KeyW is a Hanover, Md.-based total solutions provider for the Intelligence, Cyber and Counterterrorism communities. Sotera is a Herndon, Va.-based national security technology company.

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