Vencore launches $785 million of first- and second-lien term loans

By Sara Rosenberg

New York, June 1 – Vencore Inc. launched with a bank meeting on Wednesday $785 million of term loans, according to a market source.

The debt is split between a $515 million first-lien term loan (B+) due Nov. 23, 2019 and a $270 million second-lien term loan (CCC+) due May 23, 2020.

Price talk on the first-lien term loan is Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 99.25, and the second-lien term loan is talked at Libor plus 900 bps with a 1% Libor floor and a discount of 97.5 to 98, the source said.

The first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

UBS Investment Bank is the lead on the deal.

Commitments are due on June 15, the source added.

Proceeds will be used to refinance existing debt and fund a dividend.

The company is also seeking an amendment to its existing credit agreement, and first- and second-lien loan lenders are being offered a 25 bps consent fee.

Vencore, formerly known as the SI Organization Inc., is a Chantilly, Va.-based provider of information solutions, engineering and analysis to the U.S. intelligence community, Department of Defense and federal/civilian agencies.

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