MCLEAN, Va.--(BUSINESS WIRE)--DynCorp International Inc. , a wholly owned subsidiary of Delta Tucker Holdings, Inc., announced the closing of its previously announced exchange offer and consent solicitation relating to its 10.375% Senior Notes due 2017. The Company also announced the completion of the other elements of its comprehensive refinancing of outstanding secured and unsecured indebtedness to extend debt maturities.
Lou Von Thaer, chief executive officer. “This provides us with ample runway to execute our strategy so that we can continue to deliver outstanding services to our customers and create new opportunities for growth.”
In the Exchange Offer, the Company accepted approximately $415.7 million aggregate principal amount of Existing Notes on June 15, 2016 (the “Closing Date”) in exchange for $45 million cash and approximately $370.6 million of newly issued 11.875% Senior Secured Second Lien Notes due 2020 (the “New Notes”). Approximately $39.3 million aggregate principal amount of Existing Notes remain outstanding. On the Closing Date, based on the completion of the Exchange Offer, the amendments to the indenture governing the Existing Notes (the “Amendments”) that were the subject of the Consent Solicitation became operative. The Amendments, among other things, eliminated substantially all of the restrictive covenants and certain events of default contained in the indenture governing the Existing Notes.
On the Closing Date, based on the completion of the Exchange Offer and the satisfaction of conditions set forth in Amendment No. 5 and Waiver (“Amendment No. 5”), dated as of April 30, 2016, to the Company’s Senior Secured Credit Agreement, the amendments set forth in Amendment No. 5 became effective. The term loans under the credit agreement maturing on July 7, 2016 were refinanced with proceeds of the new term loan facility due July 7, 2020, and the maturity of the existing revolving credit facility was extended from July 7, 2016 to July 7, 2019, in each case as contemplated by Amendment No. 5.
As part of the Refinancing Transactions, the Company also entered into a Third Lien Credit Agreement (the “Third Lien Credit Agreement”) on the Closing Date. Under the Third Lien Credit Agreement, DynCorp Funding LLC (a limited liability company managed by Cerberus Capital Management, L.P.) provided a $30 million term loan to the Company, the proceeds of which will be used to fund the Company’s Global Advisory Group for a two-year period.
About DynCorp International
DynCorp International, a wholly-owned subsidiary of Delta Tucker Holdings, Inc., is a leading global services provider offering unique, tailored solutions for an ever-changing world. Built on seven decades of experience as a trusted partner to commercial, government and military customers, DynCorp International provides sophisticated aviation, logistics, training, intelligence and operational solutions wherever we are needed. DynCorp International is headquartered in McLean, Va.
