TASC trims pricing on $690 million credit facility, revises some OIDs

By Sara Rosenberg

New York, Dec. 8 -TASC Inc. lowered spreads on all tranches of its $690 million senior secured credit facility (Ba2/BB) and tightened the original issue discount on the term loans, according to a market source.

The $390 million term loan B is now priced at Libor plus 375 basis points, down from Libor plus 400 bps, and the $200 million term loan A and $100 million revolver are now priced at Libor plus 350 bps, down from Libor plus 375 bps, the source said.

The original issue discount on both the term loan B and the term loan A was reduced to 99 from 981/2, while the original issue discount on the revolver remained at 98, the source continued.

As before, all tranches carry a 2% Libor floor.

Recommitments are due at noon on Wednesday.

Barclays Capital, Deutsche Bank Securities and RBC Capital Markets are the lead banks on the deal, with Barclays the left lead. In addition, CPPIB Credit Investments Inc. has provided commitments toward the facility as an investor.

Proceeds from the credit facility, along with $310 million of senior subordinated notes, will be used to help fund the purchase of the company by an investor group led by General Atlantic LLC and Kohlberg Kravis Roberts & Co. from Northrop Grumman Corp. in a transaction valued at $1.65 billion.

Closing on the transaction is expected to take place in the fourth quarter, subject to customary approvals.

TASC is a Chantilly, Va.-based provider of advanced systems engineering and technical assistance to the defense, intelligence, federal, state and local markets.

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