Maximus finalizes $400 million term loan B discount at 99.5

By Sara Rosenberg

New York, May 26 – Maximus Inc. set the original issue discount on its $400 million seven-year first-lien term loan B at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

Pricing on the term loan B was reduced to 200 basis points from Libor plus 225 bps. The loan still has a 0.5% Libor floor.

The term loan B has 101 soft call protection for six months.

The company’s $2.1 billion of credit facilities (Ba2/BB+) also include a $600 million revolver and a $1.1 billion term loan A.

JPMorgan Chase Bank is the lead on the deal.

Proceeds will be used to help fund the acquisition of Veterans Evaluation Services Inc. for $1.4 billion, subject to certain adjustments, and to refinance existing debt.

Closing is expected in the company’s third fiscal quarter, subject to U.S. antitrust filing requirements and customary conditions.

Maximus is a Reston, Va.-based provider of government services. Veterans Evaluation Services is a provider of medical disability examinations to determine veterans’ eligibility for compensation and pension benefits.

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