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Science Applications firms $401 million term B at Libor plus 200 bps
By Sara Rosenberg
New York, Jan. 16 – Science Applications International Corp. finalized pricing on its $401 million covenant-light term loan B due May 4, 2022 at Libor plus 200 basis points, the low end of the Libor plus 200 bps to 225 bps talk, according to a market source.
The term loan B still has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.
The company’s $1,244,000,000 of senior secured credit facilities also include a $200 million revolver due Aug. 23, 2021 and a $643 million term loan A due Aug. 23, 2021.
Pricing on the revolver and term loan A is subject to a grid based on total leverage that ranges from Libor plus 125 bps to 200 bps with a 0% Libor floor. Old money is offered an original issue discount of 5 bps and new money is offered a discount of 20 bps.
The revolver and term loan A have a senior secured leverage ratio covenant of 3.75 times.
Citigroup Global Markets Inc., Bank of America Merrill Lynch, PNC Bank, SunTrust Robinson Humphrey Inc., U.S. Bank and Wells Fargo Securities LLC are the joint lead arrangers on the deal. Co-managers are MUFG, First Tennessee, SMBC, Capital One, J.P. Morgan Securities LLC and TD Securities (USA) LLC. Citigroup is the administrative agent.
Proceeds will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0.75% Libor floor, and an existing revolver and term loan A down from a grid that ranges from Libor plus 150 bps to 225 bps with a 0% Libor floor.
Closing is targeted for Jan. 26.
Science Applications is a McLean, Va.-based technology integrator providing full life-cycle services and solutions in the technical, engineering and enterprise information technology markets.
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