Booz Allen to sell $500 million eight-year notes on Thursday

By Paul A. Harris

Portland, Ore., Aug. 12 – Booz Allen Hamilton Inc. plans to price a $500 million offering of eight-year senior notes (existing ratings Ba2/BB-) on Thursday, according to a syndicate source.

The Rule 144A and Regulation S for life deal was scheduled to be shopped on a late Wednesday morning conference call with investors.

BofA Securities Inc., J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC are the joint bookrunners.

Fifth Third Securities Inc., Capital One Securities Inc., MUFG, PNC Capital Markets Corp. and TD Securities (USA) LLC are the co-managers.

The notes become callable after three years at par plus 50% of the coupon and feature a two-year 40% equity clawback at par plus the coupon and a 101% poison put.

The McLean, Va.-based management and information technology consulting services provider plans to use a portion of the proceeds to pay off its 5 1/8% senior notes due 2025, with the remaining proceeds, if any, to be used for working capital and general corporate purposes.

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