Wachovia Securities and Bear Stearns pushed back the bank meeting date for DRS Technologies, which was set for last Thursday, to avoid bumping heads with Hurricane Isabel. "The timing wasn't so critical that we had to [have the bank meeting last] week," said Richard Schneider, cfo. The meeting is now scheduled to be held tomorrow, he said.
The deal includes a $150 million revolver and a $362.5 million "B" loan. Price talk on the "B" tranche is in the LIBOR plus 23/4% context. Proceeds from the amended and restated deal will back DRS' $550 million acquisition of Integrated Defense Technologies (IDT), as well as refinance existing debt. DRS' existing credit includes a $125 million revolver priced at LIBOR plus 23/4% and a $213.6 million "B" loan priced at LIBOR plus 3% (LMW, 8/25).
The lead arrangers have been receiving commitments for the deal ahead of the official bank meeting, a banker noted. Most of the revolver has been filled out by existing DRS and IDT lenders, Schneider confirmed. FleetBoston Financial, an agent on DRS' existing deal, joined the new credit, he further noted. CIBC World Markets leads IDT's existing credit, but Schneider did not know if the firm would join this deal. A Bear Stearns official declined to comment and a Wachovia Banker did not return calls.
There is also a $200 million bond deal in conjunction with the acquisition transaction. Schneider said this deal is set to emerge in early October. Parsippany, N.J.-based DRS, a defense electronics company, will acquire IDT for cash and common stock. The cash portion of the acquisition, together with $175 million in assumed IDT debt, will total about $437 million.