KeyW entered into a $135 million term loan and a $50 million revolving credit facility with Royal Bank of Canada as administrative agent and collateral agent, and RBC Capital Markets as lead arranger and bookrunner.

On April 4, 2017, KeyW borrowed an aggregate of $135 million under the term loan facility and an aggregate of $10 million under the revolving loan facility.

The proceeds from the term loan facility were used to pay the purchase price of KeyW’s previously announced acquisition of Sotera Holdings, among other things. The revolver proceeds were used to fund upfront fees required to be paid on the closing date.

Eurodollar loans will accrue interest at the Eurodollar Rate plus an applicable margin of 3.75%. Base rate loans will accrue interest at a base rate per annum equal to the highest of the federal funds rate plus 1/2 of 1%, the prime commercial lending rate announced by the Royal Bank of Canada from time to time as its prime lending rate and the Eurodollar rate for a one month interest period plus 1.00%, plus an applicable margin of 2.75%.

The facilities mature on the earlier of either the five-year anniversary of the closing date or the date that is 180 days prior to the scheduled maturity date of the company’s 2.50% convertible senior notes due 2019, unless the notes are converted into equity or otherwise repaid or refinanced.