KeyW Holding closed a new $340 million senior secured credit facility with Royal Bank of Canada as administrative agent.
The credit agreements established a $215 million first lien term loan maturing in May 2024, a $75 million second lien term loan maturing in May 2025 and a $50 million senior secured revolving credit facility maturing in May 2023.
The loans under the agreements contain a maximum total net leverage covenant with step-downs as well as affirmative and negative covenants customary for transactions of this type, including limitations with respect to indebtedness, liens, investments, dividends, disposition of assets, change in business and transactions with affiliates.
The company used a portion of the proceeds from the new credit facilities to pay off its existing term loan A. The balance of the proceeds from the new credit facilities will be used to repurchase all or a portion of its 2.50% convertible notes due July 2019 and for general corporate purposes.
The joint lead arrangers and joint bookrunners under the facilities were RBC Capital Markets, Fifth Third Bank, JPMorgan Chase Bank and SunTrust Robinson Humphrey.
Hanover, MD-based KeyW is a pure-play national security solutions provider for the intelligence, cyber and counterterrorism communities.
