Global security company Northrop Grumman acquired Orbital ATK for approximately $7.8 billion in cash, plus the assumption of $1.4 billion in net debt.

According to a related 8-K filing, the company expects to finance the merger with debt financing, which could include senior unsecured notes issued in capital markets transactions, term loans, bridge loans, or any combination thereof, together with cash on hand. In connection with entering into the merger agreement, the company has entered into a commitment letter with JPMorgan Chase. JPMorgan has committed to provide a 364-day senior unsecured bridge loan facility in an aggregate principal amount of up to $8.5 billion to fund a portion of the consideration for the merger and to effect certain debt financing arrangements.

The bridge facility availability is subject to reduction in equivalent amounts upon any incurrence by the company of term loans and/or the issuance of notes in a public offering or private placement prior to the consummation of the merger and upon other specified events, subject to certain exceptions set forth in the commitment letter.

Orbital ATK shareholders will receive all-cash consideration of $134.50 per share. The agreement has been approved unanimously by the boards of directors of both companies. The transaction is expected to close in the first half of 2018 and is subject to customary closing conditions, including regulatory and Orbital ATK shareholder approval.

“The acquisition of Orbital ATK is an exciting strategic step as we continue to invest for profitable growth. Through our combination, customers will benefit from expanded capabilities, accelerated innovation and greater competition in critical global security domains. Our complementary portfolios and technology-focused cultures will yield significant value creation through revenue synergies associated with new opportunities, cost savings, operational synergies, and enhanced growth,” said Wes Bush, chairman, CEO and president of Northrop Grumman.

Upon completion of the acquisition, Northrop Grumman plans to establish Orbital ATK as a new, fourth business sector to ensure a strong focus on operating performance and a smooth transition into Northrop Grumman.

Perella Weinberg Partners is acting as exclusive financial advisor to Northrop Grumman, and Cravath, Swaine & Moore is acting as legal counsel. Citigroup is acting as exclusive financial advisor to Orbital ATK, and Hogan Lovells US is acting as legal counsel.