CSRA launches $200 million add-on term loan B at par issue price

By Sara Rosenberg

New York, Nov. 28 – CSRA Inc. launched on Tuesday its $200 million add-on term loan B due November 2023 with talk of a par issue price, according to a market source.

Pricing on the add-on loan matches existing term loan B pricing at Libor plus 200 basis points with a 0% Libor floor.

The add-on and the existing $650 million term loan B are getting 101 soft call protection for six months, the source said.

MUFG is the lead on the deal.

Commitments are due on Dec. 5.

Proceeds from the add-on will be used to refinance revolving credit facility borrowings used to fund a portion of the recent acquisitions of NES Associates and Praxis Engineering.

Funding will occur at year-end.

The company is also looking to amend its existing $700 million revolver and $1,549,000,000 term loan A-2 to extend maturities to November 2022.

Approvals from pro rata lenders to the amendment and extension are due by Dec. 12.

The existing term loan A-1 maturity of November 2019 will remain unchanged.

Pro forma leverage would be around 3 times including the add-on term loan B.

CSRA is a Falls Church, Va.-based provider of next-generation IT solutions and professional services to help government clients enhance public safety and support the well-being of U.S. citizens.

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