Mercury Systems plans $340 million credit facility for acquisition

By Sara Rosenberg

New York, March 23 – Mercury Systems Inc. has received a commitment for a $340 million senior secured credit facility to help fund its $300 million acquisition of Microsemi Corp.’s embedded security, RF and Microwave, and custom microelectronics businesses, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., KeyBanc Capital Markets and SunTrust Robinson Humphrey Inc. are the joint lead arrangers and joint bookrunners on the deal.

The facility consists of a $75 million revolver and a $265 million term loan A.

Pricing on the term loan A is expected at Libor plus 300 basis points.

Other funds for the transaction will come from about $50 million in cash on hand.

Debt to pro forma adjusted EBITDA is about 3.1 times and net debt is about 2.7 times.

Closing is expected during Mercury’s fiscal 2016 fourth quarter ending June 30, subject to customary conditions, including approval pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Mercury is a Chelmsford, Mass.-based commercial provider of secure processing subsystems.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.