Magnolia to launch $390 million credit facilities on Wednesday

By Sara Rosenberg

New York, April 3 – Magnolia is scheduled to hold a bank meeting on Wednesday to launch $390 million in credit facilities, according to a market source.

Macquarie Capital (USA) Inc. is the lead on the deal.

The facilities consist of a $40 million revolver and a $350 million seven-year term loan B, the source said.

Proceeds will be used to help fund the buyout of Harris Corp.’s government IT services business by Veritas Capital Fund Management LLC for $690 million.

Other funds for the transaction will come from equity.

Closing is expected in the second quarter, subject to regulatory review and other customary conditions.

Magnolia is a Herndon, Va.-based provider of communications, engineering and IT solutions for intelligence, defense and federal civilian customers.

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