Booz Allen says considering $1 billion special dividend, shares up

(Reuters) - Government consultancy firm Booz Allen Hamilton Holding Corp (BAH.N) said it was exploring a proposal to refinance its debt that could result in a special dividend of about $1 billion to its shareholders.

Booz Allen, which provides management and technology consulting in defense, intelligence and civil markets, said it was evaluating possible refinancing of about $959 million of debt under new credit facilities of up to $1.75 billion.

The proceeds from the refinancing, along with cash on hand, will be used to fund the special dividend, Booz Allen said in a regulatory filing. The special dividend would amount to about $7.55 per share, based on the number of shares outstanding.

Out of the 132.5 million outstanding shares, Carlyle Group (CG.O) owns about three-quarters through Explorer Coinvest.

The refinancing is expected to close, subject to market conditions and board approval, on or about July 31, the company said.

Booz Allen shares were trading up 13 percent at $16.63 on Wednesday on the New York Stock Exchange. They had touched a high of $17.41 earlier in the session.

(Reporting by A. Ananthalakshmi and Megha Mandavia in Bangalore; Editing by Sreejiraj Eluvangal, Supriya Kurane)