Engility details $150 million of incremental secured credit facilities

By Jennifer Chiou

New York, Feb. 3 - Engility Holdings, Inc. and Engility Corp. entered into on Jan. 31 a $150 million incremental senior secured credit facility with Bank of America Merrill Lynch as administrative agent, according to an 8-K filed with the Securities and Exchange Commission.

The facility bears interest at Libor plus 225 basis points to 325 bps.

As reported, the loan matures on Aug. 9, 2018, and a portion of proceeds was used to help fund the company's acquisition of Dynamics Research Corp.

The debt consists of a $75 million add-on term loan and a $75 million add-on revolver. Pricing on the add-ons matches existing term loan and revolver pricing.

Under the merger agreement, Engility tendered for all shares of Dynamics Research common stock at a price of $11.50 in cash for each outstanding share. The offer ended on Jan. 28 and 9,025,528 shares, or roughly 86% of Dynamics Research issued and outstanding shares, were tendered and accepted.

Other funds for the transaction came from cash on hand.

Engility is a Chantilly, Va.-based pure-play government services contractor. Dynamics Research is an Andover, Mass.-based U.S. government services, information technology and management consulting firm.

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