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MacDonald Dettwiler plans $3.75 billion in loans to buy DigitalGlobe
By Sara Rosenberg
New York, April 27 – MacDonald, Dettwiler & Associates Ltd. detailed plans for $3.75 billion in senior secured credit facilities that will help fund the acquisition of DigitalGlobe Inc. in an F-4 filed with the Securities and Exchange Commission on Thursday.
RBC Capital Markets and Bank of America Merrill Lynch are the lead banks on the deal.
The facilities include a $1.25 billion four-year revolver, a $250 million three-year term loan A, a $250 million four-year term loan A and a $2 billion seven-year term loan B.
As committed, pricing on the revolver and term loan A is expected to range from Libor plus 120 basis points to 300 bps based on total leverage and pricing on the term loan B is expected at Libor plus 250 bps.
The term loan B has 101 soft call protection for six months.
Amortization on the term loan B is 1% per annum.
Prior to closing, the company may elect to issue unsecured senior notes that would reduce on a dollar-for-dollar basis the term loan B commitments by up to $750 million and, after that level, the term loan B and/or term loan A commitments.
Under the agreement, DigitalGlobe is being bought for $35.00 per share in a combination of cash and stock. Each DigitalGlobe common share will be exchanged for $17.50 in cash and 0.3132 of a MacDonald Dettwiler common share.
The transaction values DigitalGlobe at an equity value of about $2.4 billion and an enterprise value of $3.6 billion, including assumption of DigitalGlobe’s $1.2 billion in net debt.
Closing is expected in the second half of the year, subject to customary conditions, including required regulatory approvals, as well as approval by both MacDonald Dettwiler and DigitalGlobe shareholders.
MacDonald Dettwiler is a Vancouver, B.C. communications and information company. DigitalGlobe is a Westminster, Colo.-based provider of Earth imaging and geospatial solutions.
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