Goldman Sachs and Deutsche Bank are leading a $675 million deal for IAP Worldwide Services to refinance debt and pay an approximately $186 million dividend to sponsor Cerberus Capital Management. Syndication of the deal launched last Monday. The facility consists of a $100 million revolver, a $350 million first-lien term loan and a $225 million second-lien term loan. Pricing is LIBOR plus 3% on the first lien and revolver, and LIBOR plus 5 3/4% on the second lien.
Standard & Poor's assigned a B+ to the first lien and a B- to the second lien. Based in Cape Canaveral, Fla., IAP provides contingency operations, facilities management and technical services to the U.S. military and civilians. According to S&P, the company will have about $575 million of pro forma debt after the transaction. A Cerberus spokeswoman could not be reached.