Engility firms spread on $335 million term loan at Libor plus 450 bps

By Sara Rosenberg

New York, July 12 - Engility Corp. set pricing on its $335 million term loan at Libor plus 450 basis points with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

Previously, talk on the term loan had been Libor plus 450 bps to 500 bps, the source said.

The company's $400 million senior secured credit facility (Ba1/BB+) also includes a $65 million revolver that was upsized from a most recent amount of $50 million but is still short of the $100 million size that was announced at launch.

Pricing on the revolver is Libor plus 450 bps.

Initially, the term loan was sized at $200 million, but it was increased when the company withdrew plans for a $250 million senior notes offering.

Bank of America Merrill Lynch and Barclays Capital Inc. are the lead banks on the deal.

Proceeds will be used to pay a dividend to L-3 Communications Holdings Inc., from which Engility is being spun off.

Engility is a Billerica, Mass.-based provider of systems engineering and technical assistance, explosive ordnance disposal/counter-IED technical support, acquisition support and NextGen services.

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