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EnergySolutions to use term loan B add-on for Duratek purchase
By Sara Rosenberg
New York, Feb. 7 - EnergySolutions will be approaching the market with an add-on to its existing term loan B facility towards the end of the second quarter or early in the third quarter to help support its acquisition of Duratek Inc., a company spokesman told Prospect News on Tuesday.
Citigroup is the lead bank on the deal.
Timing for the add-on is based on when regulatory approval for the acquisition is received, the spokesman explained.
In addition, the company will have to amend its existing credit facility in order to allow for the incremental term loan B debt, the spokesman added.
Under the acquisition agreement, EnergySolutions will purchase Duratek for $22.00 per share in cash. The total transaction consideration is about $396 million, including the assumption of Duratek's outstanding debt.
EnergySolutions also plans to use cash on hand and equity to finance the transaction.
Duratek expects to submit the merger to stockholders for their consideration during the second quarter and to close the merger promptly following receipt of stockholder and regulatory approval.
Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Calyon Securities Inc. are acting as co-financial advisors to EnergySolutions. Bear Stearns & Co. Inc. is acting as financial advisor to Duratek.
EnergySolutions is a Salt Lake City-based national energy services company. Duratek is a provider of safe, secure radioactive materials disposition and nuclear facility operations for commercial and government customers.
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