Magnolia firms $350 million term loan B at Libor plus 525 bps

By Sara Rosenberg

New York, April 25 – Magnolia set pricing on its $350 million seven-year term loan B at Libor plus 525 basis points, the midpoint of the Libor plus 500 bps to 550 bps talk, according to a market source.

In addition, the original issue discount on the term loan B was tightened to 99.5 from 99, the source said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s $390 million of credit facilities (B1/B) also include a $40 million revolver.

Macquarie Capital (USA) Inc. is the lead on the deal.

Proceeds will be used to help fund the buyout of Harris Corp.’s government IT services business by Veritas Capital Fund Management LLC for $690 million.

Other funds for the transaction will come from equity.

Closing is expected this quarter, subject to regulatory review and other customary conditions.

Magnolia is a Herndon, Va.-based provider of communications, engineering and IT solutions for intelligence, defense and federal civilian customers.

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