May 14, 2014
McLean, VA — Booz Allen Hamilton Holding Corporation (NYSE: BAH) today announced that on May 7, 2014, its wholly owned subsidiary, Booz Allen Hamilton Inc. (the “Company”) successfully closed the second amendment to its credit agreement dated as of July 31, 2012 (as previously amended by the First Amendment to Credit Agreement, dated as of August 16, 2013). With no increase in net borrowing, the amendment extended the maturity of all of the outstanding $660 million of the Company’s Term Loan A (TLA) and the $500 million revolver to May 31, 2019.
Additionally, an additional $168 million of TLA was borrowed with those proceeds applied to prepay a portion of the Company’s Term Loan B (TLB) which is subject to a higher interest rate. The interest rate for the outstanding indebtedness of approximately $830 million under the TLA is unchanged and is LIBOR + 2.5% (subject to adjustment based on the existing leveraged based pricing grid). The interest rate for the outstanding indebtedness of approximately $841 million under the TLB is also unchanged and is LIBOR + 3.0% with a 0.75% LIBOR floor. The principal balances shown above are as of May 7, 2014.
The Company amended its ability to incur up to an additional $300 million of secured debt under incremental credit facilities (or otherwise) by increasing the Consolidated Net Secured Leverage ratio cap under which such incremental indebtedness may be incurred from 3.25:1.00 to 3.50:1.00. The Company also amended its financial maintenance covenants by increasing the maximum consolidated net total leverage ratio test to (i) 4.25:1.00 through December 31, 2014 (from 4.00:1.00) and (ii) 4.00:1.00 for the three-month period ending March 31, 2015 and thereafter (from 3.75:1.00). This increase in the maximum consolidated net total leverage ratio along with certain other covenants under the Existing Credit Agreement were amended to provide for greater operational and financial flexibility to the Company. Mandatory prepayments of the TLA and TLB are generally unchanged, except for certain modifications to the excess cash flow prepayment provisions.
Further information can be found in the Company's Current Report on Form 8-K and exhibits filed with the SEC on May 13, 2014.
BAHPR-FI
