US government-focussed management and technology consultancy Booz Allen Hamilton Holding has filed for an initial public offering to raise US$300m.
The expected pricing range for the stock and the number of shares issued have yet to be set, although the…
US government-focussed management and technology consultancy Booz Allen Hamilton Holding has filed for an initial public offering to raise US$300m.
The expected pricing range for the stock and the number of shares issued have yet to be set, although the stock is expected to trade under the symbol ‘BAH’. Morgan Stanley, Barclays Capital, BofA Merrill Lynch and Credit Suisse are acting as joint bookrunning managers and underwriters of the offering, with Stifel, Nicolaus & Company, BB&T Capital Markets, Lazard and Raymond James & Associates acting as co-managers
Net proceeds are to be used to pay down some of the debt that was used to finance private equity firm Carlyle’s US$2.5bn LBO of Booz Allen’s government-consulting business back in mid-2008.
In particular, the capital raised will be used to repay a portion of Booz Allen’s US$550m 13% mezzanine term loan, which matures on July 31, 2016. The Carlyle acquisition was also financed via a US$125m senior term loan A, US$585m senior term loan B and US$956.5m in equity.
In December 2009, Carlyle undertook a recapitalisation of its investment, paying itself a special dividend of US$650m. This dividend was funded through cash-on-hand and US341.3m in net proceeds from a new term loan C and an increased revolving credit facility. For the fiscal year ended March 31, 2010, the company had net interest of US$150.6m.
The Booz Allen government-consulting business has grown rapidly over the past, netting a number of lucrative Department of Homeland Security contracts. For fiscal year 2010, the company generated revenue of US$5.12bn, up from US$4.35bn in fiscal 2009, adjusted EBITDA of US$368m and net income US$25.4m.
In its space business, Booz Allen has won consultancy contracts on the Transformational Satellite Communications System (TSAT), the Constellation Program and the US Navy’s National Security Space Acquisition Policy. It has also conducted a congressionally directed spend analysis for the Defence Information Systems Agency (DISA) on commercial satellite communications.
