ManTech restates credit agreement to extend maturity, adjust covenants

By Marisa Wong

Morgantown, W.Va., Aug. 23 – ManTech International Corp. amended and restated on Aug. 17 its existing amended and restated credit agreement dated June 13, 2014 to extend the maturity date of the revolving credit facility to Aug. 17, 2022, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

As before, the interest rate is based on the company’s consolidated total leverage ratio. The applicable margin for Libor loans ranges from 125 basis points to 225 bps and is initially 125 bps.

There is also an unused fee that ranges from 20 bps to 40 bps, depending on the leverage ratio. The unused fee is initially 20 bps.

The amended and restated credit agreement contains the following incurrence-based financial covenants: a maximum consolidated total leverage ratio of 4.5 to 1.0, a maximum consolidated senior secured leverage ratio of 3.5 to 1.0 and a minimum consolidated coverage ratio of 2.5 to 1.0, the same as in the existing credit agreement. However, the current restated credit agreement permits a step-up of the maximum consolidated total leverage ratio to 4.75 to 1.0 and a step-up of the maximum consolidated senior secured leverage ratio to 3.75 to 1.0 during the four fiscal quarters following certain material acquisitions.

In addition, under the amendment, the letter-of-credit sublimit was increased to $75 million from $50 million.

Other material terms, including the size of the revolving credit facility, the accordion feature for up to $250 million of additional commitments and the amount of the swingline loan sublimit, are unchanged.

Merrill Lynch, Pierce, Fenner & Smith Inc., Citizens Bank of Pennsylvania, Capital One, NA, JPMorgan Chase Bank, NA and PNC Capital Markets LLC are the joint lead arrangers and bookrunners; Bank of America, NA is administrative agent; PNC Bank, NA, JPMorgan Chase Bank, Citizens Bank of Pennsylvania and Capital One are co-syndication agents; and Branch Banking & Trust Co., TD Bank, NA and U.S. Bank, NA are documentation agents.

ManTech is a Fairfax, Va.-based provider of national security programs.

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