KeyW updates pricing on first- and second-lien term loans

By Sara Rosenberg

New York, May 3 – KeyW Corp. finalized pricing on its $215 million six-year first-lien term loan (B1/B+) at Libor plus 450 basis points, the high end of the Libor plus 425 bps to 450 bps talk, and increased pricing on its $75 million seven-year second-lien term loan (Caa1/B-) to Libor plus 875 bps from talk in the range of Libor plus 825 bps to 850 bps, according to a market source.

Additionally, the original issue discount on the second-lien term loan was changed to 98 from 99 and the call protection was revised to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said.

The second-lien term loan still has a 1% Libor floor.

As before, the first-lien term loan has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Both term loans have a total net leverage ratio covenant.

The company’s $340 million of senior secured credit facilities also include a $50 million five-year revolver (B1/B+).

RBC Capital Markets, Fifth Third, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. are the joint bookrunners on the deal.

Allocations are expected on Friday, the source added.

Proceeds will be used to refinance the company’s capital structure.

KeyW is a Hanover, Md.-based total solutions provider for the intelligence, cyber and counterterrorism communities.

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