Computer Sciences gets $250 million facility at Libor plus 125-250 bps

By Susanna Moon

Chicago, Sept. 20 - Computer Sciences Corp. closed a $250 million unsecured delayed-draw term loan credit facility due Sept. 18, 2016 on Tuesday with Bank of Tokyo-Mitsubishi UFJ, Ltd. as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The commitments may be increased to $350 million.

Under the terms, the company may request advances for the $250 million initial commitments until Feb. 16, 2013 and for the additional $100 million at the time the commitments are increased.

Interest on the loans is Libor plus 125 basis points to 250 bps. There is a 25 bps unused fee.

The amount outstanding under the term loan amortizes at a rate of 2.5% per quarter beginning Dec. 31, 2013.

Bank of Tokyo-Mitsubishi UFJ and Bank of America Merrill Lynch are the lead arrangers and bookrunners.

The company is required to maintain a ratio of EBITDA to interest expense of at least 3 times and a ratio of total debt to EBITDA of no more than 3 times.

As of Tuesday, there were no borrowings outstanding under the term loan.

The company said on Sept. 13 that it planned to obtain a $250 million four-year term loan to help fund the redemption of $300 million of 5% senior notes due February 2013 and $700 million of 5½% senior notes due March 2013.

Computer Sciences is a Falls Church, Va.-based provider of technology-enabled business solutions and services.

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