Dynamics Research obtains commitments for up to $130 million facility

By Jennifer Chiou

New York, June 8 - Dynamics Research Corp. said it has in place commitments for an up to $130 million secured credit facility to finance its acquisition of High Performance Technologies, Inc. for $143 million in cash.

The company entered into the merger agreement on June 3 with DRC-Prize Acquisition, Inc., a wholly owned subsidiary of High Performance Technologies, and principal shareholders. High Performance is a provider of high-end technology services, primarily to the federal health-care and military markets.

According to an 8-K filing with the Securities and Exchange Commission, Bank of America, NA, SunTrust Bank and PNC Bank, NA are providing a $110 million term loan and a $20 million revolver.

The facility will be guaranteed by all of the company's and its subsidiaries' assets.

The term loan will amortize in quarterly installments with a five-year term, while the revolving facility will also mature in five years.

In addition, Ares Management LLC and its affiliates have committed to provide a $40 million senior subordinated credit facility.

The merger agreement may be terminated if not completed on or before July 29.

Andover, Mass.-based Dynamics Research is a provider of information technology, engineering and other services for federal, state and local governments.

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