Booz Allen Hamilton (BAH) Announces Possible Debt Refi; Could Pay Special $1B Dividend to Shareholders
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Booz Allen Hamilton Holding Corporation (NYSE: BAH), the parent company of management and technology consulting firm Booz Allen Hamilton Inc., today announced that the company's management is exploring, subject to continuing management review and to further consideration and ultimate approval by the company's Board of Directors, the possible refinancing of approximately $959 million of indebtedness outstanding under its senior secured credit facilities with funded debt under new senior secured credit facilities of up to $1.75 billion.
The new senior secured credit facilities would also be expected to include a revolving credit facility of approximately $500 million.
The net proceeds remaining after refinancing existing indebtedness, together with cash on hand of up to approximately $260 million, would be expected to be used, subject to continuing management review and to further consideration and ultimate approval by the company's Board of Directors, principally to pay a special dividend to the stockholders of Booz Allen in an amount up to approximately $1 billion.
Booz Allen is exploring this potential refinancing and use of proceeds in connection with the ongoing evaluation of its capital structure and deployment, taking into account a currently favorable credit environment.
In connection with the proposed refinancing, Booz Allen intends to provide potential financing sources with an information memorandum containing certain unaudited Consolidated EBITDA information, as defined in the company's existing credit agreement, for Booz Allen Hamilton Inc. for the fiscal years ended March 31, 2010, 2011 and 2012 which has not been previously publicly reported by Booz Allen.
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The new senior secured credit facilities would also be expected to include a revolving credit facility of approximately $500 million.
The net proceeds remaining after refinancing existing indebtedness, together with cash on hand of up to approximately $260 million, would be expected to be used, subject to continuing management review and to further consideration and ultimate approval by the company's Board of Directors, principally to pay a special dividend to the stockholders of Booz Allen in an amount up to approximately $1 billion.
Booz Allen is exploring this potential refinancing and use of proceeds in connection with the ongoing evaluation of its capital structure and deployment, taking into account a currently favorable credit environment.
In connection with the proposed refinancing, Booz Allen intends to provide potential financing sources with an information memorandum containing certain unaudited Consolidated EBITDA information, as defined in the company's existing credit agreement, for Booz Allen Hamilton Inc. for the fiscal years ended March 31, 2010, 2011 and 2012 which has not been previously publicly reported by Booz Allen.
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