Tasc Inc., a provider of systems engineering and advisory services, increased the size of a term loan it’s seeking to refinance a portion of the company’s senior subordinated notes due 2016 to $75 million from $65 million, said a person with knowledge of the transaction.
The debt due in 2015 will pay interest at 3.25 percentage points more than the London interbank offered rate, said the person, who declined to be identified because the terms are private. Libor, the rate banks say they can borrow in dollars from each other, will have a 1.25 percent minimum.
Tasc is proposing to sell the loan at 98 cents on the dollar, compared with 98 cents to 98.5 cents originally offered, the person said, reducing proceeds for the company and boosting the yield to investors.
Barclays Plc. is arranging the financing for the Chantilly, Virginia-based company and investors have until today at 5 p.m. in New York to submit commitments, the person said.
Leverage, or debt to earnings before interest, taxes, depreciation and amortization, will be 5.4 times for the company, the person said. The debt is rated B1 by Moody’s Investors Service and BB- by Standard & Poor’s.
“Tasc is always seeking to lower our interest expense and improve our financial flexibility,” Wayne Rehberger, chief financial officer, said in an e-mailed statement on March 22. “Upon successful completion of this transaction, we will have accomplished both objectives.”
KKR & Co., the New York-based private-equity firm, and Greenwich, Connecticut-based General Atlantic purchased the company from Northrop Grumman Corp. (NOC) in December 2009 for $1.65 billion, according to data compiled by Bloomberg.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan it can’t.
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