By Paul A. Harris
St. Louis, Jan. 26 - Alion Science and Technology Corp. priced an upsized $250 million issue of eight-year senior notes (B3/CCC+) at par to yield 10¼% on Friday, according to market sources.
The yield came at the tight end of the 10¼% to 10 3/8% price talk, which had been lowered from initial price talk in the 10½% area.
Credit Suisse has the books for the Rule 144A with registration rights issue, which was upsized from $200 million.
Proceeds will be used to repay the company's bridge loan and a portion of its senior term loan.
Alion is a McLean, Va., technology solutions provider delivering technical expertise and operational support to the Department of Defense.
| Issuer: | Alion Science and Technology Corp.
|
| Amount: | $250 million (increased from $200 million)
|
| Maturity: | Feb. 1, 2015
|
| Security description: | Senior notes
|
| Bookrunner: | Credit Suisse
|
| Coupon: | 10¼%
|
| Price: | Par
|
| Yield: | 10¼%
|
| Spread: | 537 bps
|
| Call features: | Callable on Feb. 1, 2011 at 105.125, 102.563, par on and after Feb. 1, 2013
|
| Equity clawback: | Until Feb. 1, 2010 for 35% at 110.25
|
| Trade date: | Jan. 26
|
| Settlement date: | Feb. 8
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 10¼% to 10 3/8% (lowered from 10½% area)
|
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