Michael Baker talks $450 million term loan at Libor plus 425 bps

By Paul A. Harris

Portland, Ore., April 11 – Michael Baker International LLC talked a $450 million term loan B (B2/B+) at Libor plus 425 basis points with a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The deal comes with 101 soft call protection for six months.

A springing maturity makes the loan due on Jan. 1, 2019 in the event the 8 7/8% holdco notes due 2019 have not been fully repaid by that time.

Barclays is the left lead on the deal.

Proceeds will be used to refinance the company’s existing $125 million ABL revolver due 2018, fund a tender offer for its existing $350 million 8¼% senior secured notes due 2018, repay its existing $8 million PMC subordinated notes due 2018 and repay about $4 million of certain holdco debt and preferred equity, the source said.

Michael Baker is a Pittsburgh-based provider of engineering, development, intelligence and technology solutions.

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