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MacDonald, Dettwiler firms $2 billion term B at Libor plus 275 bps
By Sara Rosenberg
New York, July 7 – MacDonald, Dettwiler & Associates Ltd. (MDA) firmed pricing on its $2 billion seven-year covenant-light term loan B (Ba3/BB) at Libor plus 275 basis points, the high end of the Libor plus 250 bps to 275 bps talk, according to a market source.
The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.
Included in the term loan is MFN for life, the source said.
RBC Capital Markets, Bank of America Merrill Lynch, BMO Capital Markets, CIBC, Wells Fargo Securities LLC, TD Securities (USA) LLC, Bank of Nova Scotia and HSBC Securities (USA) Inc. are the bookrunners on the deal.
Proceeds will be used to help fund the acquisition of DigitalGlobe Inc. 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 MDA common share.
The transaction values DigitalGlobe at an equity value of about $2.4 billion and an enterprise value of $3.6 billion, including the assumption of DigitalGlobe’s $1.2 billion in net debt.
Along with the term loan B, the company has received commitments for a $1.25 billion four-year revolver, a $250 million three-year term loan A and a $250 million four-year term loan A, which were syndicated back in May.
Closing is expected in the second half of the year, subject to customary conditions, including required regulatory approvals, as well as approval by both MDA and DigitalGlobe shareholders.
MDA 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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