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TRLPC: Morgan Stanley leads Harris $3.4B bridge loan for Exelis buy
2015年2月6日 / 下午3点38分 / 3 年前

TRLPC: Morgan Stanley leads Harris $3.4B bridge loan for Exelis buy

NEW YORK, Feb 6 (Reuters) - Morgan Stanley is sole lead arranger of the $3.4 billion, 364-day bridge loan slated to back government communications and information technology company Harris Corp’s acquisition of Exelis Inc, sources told Thomson Reuters LPC.

Harris expects to replace the bridge loan with a combination of bonds and term loans, the company said on a conference call Friday morning.

Syndication of the bridge loan and a term loan will launch next week, according to sources.

Melbourne, Florida-based Harris said Friday it had reached a definitive agreement under which Harris will acquire Exelis, a McLean, Virginia-based global aerospace, defense, information and services company, in a cash and stock transaction valued at $23.75 per share, or an approximately $4.75 billion enterprise value.

The transaction, which has been unanimously approved by the boards of directors of both companies, is expected to close in June, subject to regulatory and Exelis shareholder approval.

Under the terms of the transaction, Exelis shareholders will receive $16.625 in cash and 0.1025 of a share of Harris common stock, based on Harris’ closing price as of February 5, for each share of Exelis common stock, according to a joint press release. Upon closing, Harris shareholders will own approximately 85 percent of the combined company, and Exelis shareholders will own approximately 15 percent, also according to the release.

On a pro forma basis for the latest 12 months ended December 31, 2014, the combined company would have had more than $8 billion in revenue and about 23,000 employees globally, including 9,000 engineers and scientists, according to the joint statement. (Editing By Jon Methven)

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