Syndication launched last Wednesday for a $550 million facility backing CACI International's $415 million acquisition of American Management System's (AMS) Defense and Intelligence Group (DIG). The Banc of America Securities-led facility consists of a five-year, $200 million revolver and a seven-year, $350 million term loan. Price talk is LIBOR plus 21/4% on the term loan. It could not be determined where pricing on the revolver would likely settle.
CACI is a new issuer, buysiders noted. CACI and AMS are government contracted IT service providers. "The assets tend to be minimal for those type of businesses," one buysider said. "They just happen to be in a good space right now. Defense is a pretty hot sector."
The transaction is being done concurrently with CGI Group's announcement of a tender offer for all outstanding shares of AMS for $858 million. The closing of CACI's acquisition of DIG and CGI's tender offer for AMS' shares are conditioned upon the closing of the other. B of A advised CACI, Goldman Sachs advised AMS, and National Bank Financial and Credit Suisse First Boston advised CGI. A CACI spokeswoman did not return calls.