TASC reduces first-lien term loan size, increases second-lien amount

By Sara Rosenberg

New York, May 6 - TASC Inc. downsized its six-year first-lien term loan (B1/B+) to $393 million from $432 million and upsized its seven-year second-lien term loan (Caa2/CCC+) to $250 million from $200 million, according to a market source.

The first-lien term loan is still priced at Libor plus 550 basis points with a 1% Libor floor and an original issue discount of 99, and still has 101 soft call protection for one year.

Pricing on the second-lien term loan remained at a fixed rate of 12% with no floor and an original issue discount of 98, and the debt is still non-callable for one year, then at 105 in year two and 102.5 in year three.

Earlier in syndication, the offer price on the second-lien loan was revised from par and the call protection was changed from 102 in year one and 101 in year two, and a total net leverage covenant was added to the first-and second-lien tranches, taking away their covenant-light status.

The company's now $693 million senior secured credit facility, up from $682 million, also includes a $50 million five-year revolver (B1/B+).

Recommitments were due by noon ET on Tuesday, the source added.

Barclays and KKR Capital are leading the deal.

Proceeds will be used to refinance an existing credit facility.

Net senior secured leverage is 3.6 times and net total leverage is 5.8 times, up from 5.6 times previously.

At first, the company launched an amendment and extension of its existing non-covenant-light credit facility, but that was shifted last month to plans for the new credit facility.

The amendment and restatement would have extended the $632 million term B by two years to Dec. 18, 2017 and raised pricing to Libor plus 525 bps with a 1.25% Libor floor from Libor plus 325 bps with a 1.25% Libor floor. It also would have extended the revolver by two years to Sept. 18, 2017 and reduced the size to $50 million from $80 million.

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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