On Assignment gets $1.6 billion credit facilities commitment

By Sara Rosenberg

New York, Jan. 31 – On Assignment Inc. received a commitment for $1.6 billion of credit facilities to fund its acquisition of ECS Federal LLC, according to a company presentation.

Wells Fargo Securities LLC is the lead bank on the deal.

The facilities consist of a $200 million five-year revolver and a $1.4 billion seven-year term loan B.

On Assignment expects to execute a portion of the financing via an amendment to its existing facilities, the presentation said.

Estimated leverage at close is 3.7 times.

Under the agreement, ECS is being acquired from Roy Kapani, the company’s majority owner and founder, and Lindsay Goldberg for $775 million in cash.

On a pro forma basis, which assumes the acquisition of ECS occurred at the beginning of 2017, On Assignment’s revenues are estimated to be about $3.2 billion and adjusted EBITDA is estimated to be around $379 million.

Closing is expected on April 2, subject to regulatory approvals and customary conditions.

On Assignment intends to change its name to ASGN Inc. effective April 2.

On Assignment is a Calabasas, Calif.-based provider of IT and professional services in the technology, creative/digital, engineering and life sciences sectors. ECS is a Fairfax, Va.-based provider of cyber security, cloud, DevOps, IT modernization and advanced science and engineering solutions to government enterprises.

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