Bank of America is providing a $125 million credit facility to help back DigitalNet's $223 million acquisition of Getronics Government Solutions. "The feedback on the credit has been extremely positive," said Craig Bondy, v.p. at GTCR Golder Rauner, the private equity firm sponsoring the deal. "I think it has a lot of momentum." A banker familiar with the facility agreed, adding that the credit was shaping up well, most likely as a club deal. B of A officials declined to comment.
Bondy noted that there were two bank meetings, with the first consisting of lenders having strong relationships with GTCR and the second serving as a more general meeting. The credit consists of a $100 million term loan "B" and a $25 million revolver. Initial pricing is set at LIBOR plus 4% on the "B" piece and LIBOR plus 31/ 2% on the revolver. B of A also is providing $34 million in mezzanine financing for the acquisition, which made the bank more appealing to GTCR when selecting a lead for the credit, he said.
GTCR decided to conduct the acquisition on behalf of DigitalNet because the firm liked the fundamentals of Getronics' business, Bondy said. He also noted that DigitalNet CEO Ken Bajaj is linked to Getronics through past positions with acquired companies. "It's his old business," he added.