Wyle to get $200 million of additional debt for purchase of CAS

By Sara Rosenberg

New York, Aug. 9 - Wyle Inc. plans on getting approximately $200 million of incremental debt to help fund its acquisition of CAS Inc. from ITT Corp., according to a news release.

Barclays Capital and JPMorgan are the lead banks on the deal.

Other funding for the transaction will come from cash on hand and about $20 million of equity from the company's controlling shareholder, Court Square Capital Partners.

In addition, the company might need to amend its existing credit facility to allow for the acquisition. As a result, the company's debt commitment is large enough to provide for the incremental debt and the refinancing of the existing credit facility in case that is required.

Closing of the acquisition is subject to review and approval by regulatory authorities such as the Federal Trade Commission and other customary conditions.

Following the transaction, pro forma total leverage will be roughly 5.5 times and the combined entity will have pro forma 2009 revenues of about $1 billion.

Wyle is an El Segundo, Calif.-based provider of high-tech systems engineering, testing and information technology services. CAS is a Huntsville, Ala.-based provider of systems engineering and technical assistance for of military applications.

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