An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
Booz Allen Hamilton Inc. Closes Ninth Amendment to Credit Agreement
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
Booz Allen Hamilton Holding Corporation (NYSE: BAH) announced a successful amendment to its credit agreement on September 7, 2022. This includes raising $2,650 million under Senior Secured Credit Facilities, reducing overall interest costs by shifting Term Loan B (TLB) balances to Term Loan A (TLA), and extending maturities for a new five-year term. The amendment also permits operational and financial flexibility, with the TLA's interest rate set at SOFR + 1.25%. The Company borrowed an additional $425 million to prepay all outstanding TLB, with new maturity dates set for September 7, 2027.
Positive
Raised $2,650 million under Senior Secured Credit Facilities.
Reduced overall interest costs by transitioning TLB to TLA.
Extended maturities for TLA and Revolving Credit Facility to September 7, 2027.
MCLEAN, Va.--(BUSINESS WIRE)--
Booz Allen Hamilton Holding Corporation (NYSE: BAH) today announced that on September 7, 2022, its wholly owned subsidiary, Booz Allen Hamilton Inc. (the “Company”), successfully closed the ninth amendment to its credit agreement, dated as of July 31, 2012. Key updates for the refinancing include, but are not limited to, raising $2,650 million under the Senior Secured Credit Facilities, reducing overall interest costs by transitioning Term Loan B (“TLB”) balances into the Term Loan A (“TLA”) market, extending maturities under the Company’s Revolving Credit Facility (“Revolver”) and TLA for a new five-year term, and converting to a SOFR-based loan. Under the credit agreement, as amended, the Company's Revolver and TLA mature on September 7, 2027, and the Company’s TLB will be extinguished.
In connection with the amendment, an additional approximately $425 million of the Company's TLA was borrowed with a portion of the proceeds used to prepay all of the outstanding TLB. The credit agreement, as amended, consists of a $1,000 million Revolver and $1,650 million TLA. Following the amendment, the interest rate for the outstanding indebtedness of approximately $1,650 million under the TLA is SOFR + 1.25%, plus a 10 basis points Credit Spread Adjustment as the Company transitions from a LIBOR-based agreement to SOFR-based (subject to adjustment based on the lower of (i) the applicable rate per annum determined pursuant to a leveraged based pricing grid and (ii) the applicable rate per annum determined pursuant to a ratings based pricing grid) with no SOFR floor.
The Company also amended the TLA amortization schedule from 5% per annum to 2.5% per annum prior to the two-year anniversary of the amendment closing date and 5% per annum thereafter. Certain other covenants and terms under the credit agreement were amended to provide for greater operational and financial flexibility to the Company.
Further information can be found in Booz Allen Hamilton Holding Corporation’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 7, 2022.
About Booz Allen Hamilton
For more than 100 years, military, government, and business leaders have turned to Booz Allen Hamilton to solve their most complex problems. As a consulting firm with experts in analytics, digital solutions, engineering, and cyber, we help organizations transform. We are a key partner on some of the most innovative programs for governments worldwide and trusted by its most sensitive agencies. We work shoulder-to-shoulder with clients, using a mission-first approach to choose the right strategy and technology to help them realize their vision.
With global headquarters in McLean, Virginia, our firm employs nearly 29,300 people globally as of June 30, 2022 and had revenue of $8.4 billion for the 12 months ended March 31, 2022. To learn more, visit www.boozallen.com. (NYSE: BAH)
What did Booz Allen Hamilton announce on September 7, 2022?
On September 7, 2022, Booz Allen Hamilton announced the successful closing of the ninth amendment to its credit agreement, including raising $2,650 million and extending maturities for a new five-year term.
What is the interest rate for Booz Allen's TLA after the credit agreement amendment?
The interest rate for the outstanding TLA is set at SOFR + 1.25%, plus a 10 basis points Credit Spread Adjustment.
How much additional borrowing did Booz Allen Hamilton undertake in the amendment?
Booz Allen Hamilton borrowed an additional approximately $425 million in connection with the credit agreement amendment.
When do the new maturities for Booz Allen's TLA and Revolving Credit Facility expire?
The new maturities for the TLA and Revolving Credit Facility expire on September 7, 2027.
