CSFB, Wells Fargo Snag URS Debt Deal

  • 21 Jul 2002
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Credit Suisse First Boston and Wells Fargo Bank have landed the lead roles on a $900 million debt financing package backing URS Corp.'s acquisition of EG&G Technical Services from The Carlyle Group. The debt package will consist of $650 million in senior secured bank debt and $250 million via a senior subordinated note offering. David Nelson, treasurer of URS, did not return calls. A spokesman for Wells Fargo confirmed that the bank is co-leading the deal, adding that it has been a relationship lender to URS for several of its more recent transactions. Officials at CSFB declined to comment.

The bank debt will be divided among a six-year, $350 million "B" term loan, a five-year, $100 million "A" loan and a five-year, $200 million revolver that probably will be unfunded at close, according to bankers. The spread on the revolver and "A" loan is LIBOR plus 3%, while the "B" piece will have a spread of LIBOR plus 31/ 2%. The bank meeting is set for this Wednesday.

San Francisco-based URS is paying $500 million for EG&G, a Gaithersburg, Md., provider of outsourced engineering, technology and operations management services to the U.S. government. URS will pay $165 million in cash and issue $130 million in stock to EG&G shareholders. URS also will retire $165 million in EG&G debt and refinance $354 million of its own debt. In addition to the debt package, the company is planning a $170-175 million equity offering to help finance the acquisition. EBITDA for the combined company is $250 million.


  • 21 Jul 2002

New! GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 7,171 21 10.72
2 Bank of America Merrill Lynch (BAML) 6,901 20 10.32
3 JP Morgan 4,776 10 7.14
4 Credit Suisse 4,718 9 7.05
5 Lloyds Bank 4,420 14 6.61

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1 Wells Fargo Securities 68,611.22 170 11.38%
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3 JPMorgan 56,861.85 163 9.43%
4 Citi 56,521.05 165 9.38%
5 Credit Suisse 44,888.95 123 7.45%