Booz Allen U.S. Government Business targets June 11 launch for $810 million credit facility

By Sara Rosenberg

New York, May 30 - Booz Allen Hamilton Inc.'s U.S. Government Consulting Business is currently looking at June 11 for a retail bank meeting to launch its proposed $810 million credit facility, according to a market source.

Bank of America, Credit Suisse and Lehman Brothers are the lead banks on the deal.

The facility consists of a $100 million revolver, a $250 million term loan A and a $460 million term loan B, the source said.

Proceeds will be used to help fund the buyout of the company by Carlyle Group for $2.54 billion.

Other acquisition financing will come from $550 million of mezzanine debt.

Leverage through the bank deal will be around the low-3s and total leverage will be around the mid-5s.

The transaction is expected to close in mid to late 2008, subject to shareholder and regulatory approvals and other customary closing conditions.

The U.S. government business, based in McLean, Va., has more than 18,000 employees in 80 offices worldwide, generating annual net revenues in excess of $2.7 billion.

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