TASC reveals offer prices on first- and second-lien term loans

By Sara Rosenberg

New York, April 25 - TASC Inc. released offer prices on its $432 million six-year covenant-light first-lien term loan and $200 million seven-year covenant-light second-lien term loan in connection with its conference call on Friday, according to a market source.

The first-lien term loan is being offered at an original issue discount of 99, and the second-lien term loan is being offered at par, the source said.

As previously reported, talk on the first-lien term loan is Libor plus 550 basis points with a 1% Libor floor, and talk on the second-lien term loan is a fixed rate of 12%.

The first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company's $682 million senior secured credit facility also includes a $50 million five-year revolver talked at Libor plus 550 bps.

Commitments are due on May 2.

Barclays and KKR Capital are the bookrunners on the deal.

Proceeds will be used to refinance the company's existing credit facility.

Net senior secured leverage is 3.7 times, and net total leverage is 5.6 times.

Initially, the company was looking to do an amendment and extension of its existing credit facility, but that was replaced with plans for the new credit facility.

Under the amendment and restatement, the company was asking to extend its roughly $632 million term loan B by two years to Dec. 18, 2017 and raise pricing to Libor plus 525 bps with a 1.25% Libor floor from Libor plus 325 bps with a 1.25% Libor floor, and to extend its revolver by two years to Sept. 18, 2017 and reduce the size to $50 million from $80 million.

The proposed extended facility had a maximum consolidated total leverage ratio of 7.75 times from closing through third quarter 2015, 7.5 times from fourth quarter 2015 through second quarter 2016, 7.25 times from third quarter 2016 through second quarter 2017 and 6 times thereafter.

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

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