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Published on 8/14/2020 in the Prospect News Bank Loan Daily.

Milano Acquisition flexes $2.4 billion term B to Libor plus 400 bps

By Sara Rosenberg

New York, Aug. 14 – Milano Acquisition Corp., an affiliate of Veritas Capital, reduced pricing on its $2.4 billion seven-year first-lien term loan B (B2/B+) to Libor plus 400 basis points from talk in the range of Libor plus 425 bps to 450 bps, according to a market source.

Also, a 25 bps pricing step-down was removed from the term loan and the original issue discount talk was revised to a range of 98.5 to 99 from 98, the source said.

The term loan still has a 0.75% Libor floor.

J.P. Morgan Securities LLC is the left lead bank on the deal.

Recommitments are due at 11 a.m. ET on Monday, the source added.

Proceeds will be used to help fund the acquisition of DXC Technology’s U.S. State and Local Health and Human Services business (State & Local HHS) for $5 billion.

Other funds for the transaction will come from an $800 million privately placed second-lien term loan and equity.

Closing is expected no later than December, subject to customary conditions, including the receipt of certain third-party consents and regulatory approvals.

U.S. State and Local Health and Human Services is an end-to-end provider of technology enabled, mission critical solutions that are fundamental to the administration and operations of health programs.


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