Milano Acquisition to launch $2.4 billion term loan B on Wednesday

By Sara Rosenberg

New York, Aug. 4 – Milano Acquisition Corp., an affiliate of Veritas Capital, is scheduled to hold a lender call on Wednesday to launch a $2.4 billion seven-year first-lien term loan B, according to a market source.

J.P. Morgan Securities LLC is the left lead bank on the deal.

Price talk on the first-lien term loan is Libor plus 425 basis points to 450 bps with a 0.75% Libor floor and an original issue discount of 98, the source said.

Proceeds will be used to help fund the acquisition of DXC Technology’s U.S. State and Local Health and Human Services business (State & Local HHS) for $5 billion.

Other funds for the transaction will come from an $800 million privately placed second-lien term loan and equity.

Closing is expected no later than December, subject to customary conditions, including the receipt of certain third-party consents and regulatory approvals.

U.S. State and Local Health and Human Services is an end-to-end provider of technology enabled, mission critical solutions that are fundamental to the administration and operations of health programs.

© 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.