L-3 Communications extends $1 billion revolver to 2017, lowers pricing

By Angela McDaniels

Tacoma, Wash., Feb. 8 - L-3 Communications Holdings, Inc. subsidiary L-3 Communications Corp. amended and restated its $1 billion revolving credit facility on Friday, extending the maturity and lowering the interest rate, according to an 8-K filing with the Securities and Exchange Commission.

The maturity date was extended to Feb. 3, 2017 from Oct. 23, 2012.

The interest rate is Libor plus 125 basis points to 200 bps. The exact margin is based on the company's non-credit enhanced senior unsecured debt rating. The commitment fee is 15 bps to 32.5 bps.

When the company entered into the original revolver in October 2009, the margin over Libor was 225 bps to 400 bps, and the commitment fee was 37.5 bps to 75 bps.

In addition, the amended and restated revolver provides for up to $500 million of uncommitted incremental revolving facilities and additional term loans.

The restriction on dividends and certain payments with respect to equity interests has been eliminated.

The financial covenants remain the same. L-3 Communications' consolidated interest coverage ratio must be greater than 3.0 to 1.0, its consolidated leverage ratio must be less than 4.0 to 1.0, and its consolidated senior leverage ratio must be less than 3.5 to 1.0.

The revolver has a $50 million sublimit for swingline loans.

Bank of America, NA is the administrative agent. Barclays Capital is the syndication agent. Credit Agricole Corporate & Investment Bank, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey, Inc., Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ, Ltd., U.S. Bank NA and Wells Fargo Bank, NA are the documentation agents.

Bank of America Merrill Lynch, Barclays, Credit Agricole, Deutsche Bank Securities, SunTrust Robinson Humphrey, Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ, U.S. Bank and Wells Fargo Bank were the bookrunners and lead arrangers.

L-3 is a New York-based contractor in command, control, communications, intelligence, surveillance and reconnaissance systems, aircraft modernization and maintenance and government services. It is also a provider of electronic systems used on military and commercial platforms.

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