UPDATE 1-RLPC: CACI readies launch of $1.7B credit for Six3 buy

Thu Oct 17, 2013 12:05pm EDT

By Michelle Sierra

NEW YORK Oct 17 (Reuters) - U.S. contractor CACI International is launching October 22 a $1.681 billion credit facility that will back the company's acquisition of Six3 Systems Inc and refinance existing debt, sources told Thomson Reuters LPC.

Bank of America Merrill Lynch is leading the deal. JP Morgan, SunTrust Bank, Citizens Bank and Wells Fargo are also lenders.

The facilities comprise a $750 million, five-year revolver, a $631 million, five-year term loan A and a $300 million, seven-year term loan B.

The revolver includes $25 million and $50 million sublimits for letter of credit and swingline borrowings, respectively. The facility can be increased by an additional $400 million.

Drawn pricing on the revolver and term loan A opens at LIB+200 based on the company's consolidated leverage ratio. If the revolver remains undrawn it pays 35bp. Upon changes to the company's consolidated leverage ratio, drawn pricing can range from LIB+125 to LIB+250. The commitment fee on the revolver ranges between 20bp and 40bp.

The term loan B pays LIB+275.

CACI said on October 9 it was planning to back the $820 million acquisition of the national security intelligence provider through the new $800 million financing commitment from BAML, and borrowings under its existing revolving credit facility.

CACI is purchasing Six3 Systems from private equity firm GTCR. The transaction is expected to close in CACI's fiscal second quarter ending December 2013.

According to LPC data, CACI entered in August $881.25 million in credit facilities. The financing included a $600 million revolver and a $131.25 million term loan A. Drawn pricing is LIB+150. The revolver pays a 25bp if it remains undrawn.

Six3 Systems specializes in human intelligence gathering and security services and technologies for biometrics and identification that back these activities. The company was founded in 2009 via a partnership with GTCR Golden Rauner, LLC and Six3 Systems CEO Robert Coleman. It is headquartered in McLean, Virginia

CACI provides information solutions and services on national security missions for the U.S. government.

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