KeyW sets price talk on first- and second-lien term loans with launch

By Sara Rosenberg

New York, April 18 – KeyW Corp. announced price talk on its $215 million six-year first-lien term loan (B+) and $75 million seven-year second-lien term loan (B-) in connection with its bank meeting on Wednesday, according to a market source.

Price talk on the first-lien term loan is Libor plus 425 basis points to 450 bps with a 1% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 825 bps to 850 bps with a 1% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Both term loans have a total net leverage ratio covenant, the source continued.

The company’s $340 million of senior secured credit facilities also include a $50 million five-year revolver (B+).

RBC Capital Markets, Fifth Third, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. are the joint bookrunners on the deal.

Commitments are due at 5 p.m. ET on May 2, the source added.

Proceeds will be used to refinance the company’s capital structure.

KeyW is a Hanover, Md.-based total solutions provider for the intelligence, cyber and counterterrorism communities.

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