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Aecom readies launch of roughly $1.26 billion term loan B for Thursday
By Sara Rosenberg
New York, Sept. 2 – Aecom Technology Corp. set a bank meeting for Thursday to launch its $1,262,500,000 seven-year covenant-light term loan B, according to a market source.
Bank of America Merrill Lynch, MUFG Union Bank, Scotia Bank, BNP Paribas Securities Corp. and J.P. Morgan Securities LLC are the joint lead arrangers and joint bookrunners on the deal.
Based on filings with the Securities and Exchange Commission, pricing on the term loan B is expected at Libor plus 300 basis points with a 0.75% Libor floor and the debt is anticipated to include 101 soft call protection for six months.
Proceeds from the new debt will be used to help fund the cash consideration of the acquisition of URS Corp. and to refinance some existing debt at Aecom and URS.
Under the agreement, URS stockholders will receive per share consideration equal to $33.00 in cash and 0.734 of a share of Aecom common stock. URS stockholders may elect to receive all cash or all stock consideration, and the election will be subject to a customary proration mechanism to achieve an aggregate consideration mix of about 59% cash and 41% Aecom common shares.
The acquisition is valued at about $6 billion, including the assumption of URS debt.
URS stockholders will own shares that account for about 35% of the combined company.
Closing is expected in October, subject to approvals from both companies’ stockholders, regulatory approvals and customary conditions. The transaction is not conditioned on financing.
Aecom is a Los Angeles-based engineering design firm. URS is a San Francisco-based provider of engineering, construction and technical services.
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