Academi Holdings to launch $430 million credit facility on Tuesday

By Sara Rosenberg

New York, June 9 – Academi Holdings LLC is set to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $430 million five-year credit facility, according to a market source.

Bank of America Merrill Lynch is the lead arranger on the deal.

The facility consists of a $150 million revolver and a $280 million term loan, the source said.

Price talk on the term loan is Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99, the source continued.

The term loan has 101 soft call protection for one year and amortization of 5% per annum.

Financial covenants include maximum total net leverage, minimum fixed charge coverage and minimum asset coverage.

Proceeds will be used to fund the acquisition of Constellis Group Inc., to refinance existing debt and for general corporate purposes.

Academi is a McLean, Va.-based provider of training and security services focused on counterterrorism, force protection, law enforcement and security operations. Constellis is a provider of security, support and advisory services to government, multinational corporations and international organizations.

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