DLH gets $95 million bank facility to buy public health services firm

By Rebecca Melvin

New York, June 10 – DLH Holdings Corp. obtained a $95 million five-year secured bank credit facility to fund its acquisition of Social & Scientific Systems for $70 million in cash, according to a company press release.

First National Bank of Pennsylvania acted as agent, and FNB Capital Markets and M&T Bank acted as joint lead arrangers for the bank facility, which is comprised of a $70 million syndicated term loan and a $25 million revolver.

The acquisition price and transaction expenses were funded by the term loan plus cash reserves of DLH, with the revolver available to support future cash needs.

The interest rate for the borrowings was 6.42%, based on a rate of Libor plus a spread and the consolidated leverage ratio of DLH at closing.

KippsDeSanto & Co. acted as financial adviser to DLH. Hogan Lovells US, LLP and Becker & Poliakoff LLP acted as legal advisers to DLH as part of the transaction, and the Avascent Group, Baker Tilly and the Lockton Cos. provided consulting services to DLH in connection with the acquisition.

The Atlanta company provides health and human services programs to the U.S. government.

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