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Engility Announces Plan to Refinance Existing Debt

July 25, 2016, 07:47 AM
Filed Under: Consulting Services
Related: Refinancing

Engility Holdings, Inc. announced its intent to refinance its first and second lien term loan facilities and expand its revolving credit facility, subject to market and other conditions. The objectives of the refinancing and credit facility expansion are to reduce the company’s interest expense, increase its financial flexibility and extend its weighted average debt maturity. If consummated, the company anticipates it will continue to have approximately $1.1 billion in net debt. The terms of the potential refinancing will be disclosed upon the completion of the transaction, which is anticipated to occur in early August 2016.

In connection with the anticipated refinancing, the Company also intends to provide to potential lenders and investors the following preliminary financial results for the second quarter ended July 1, 2016:

  • Total revenue of approximately $535 million;
  • Adjusted EBITDA of approximately $48 million;
  • Book-to-bill ratio of approximately 1.2x based on net bookings;
  • Total backlog of approximately $3.0 billion; and
  • Submitted bids awaiting adjudication of approximately $5.0 billion.

The company notes that revenue from the second quarter benefited from approximately $5 million of supplemental program work completed during the quarter. The company also made voluntary debt prepayments of $20 million during the second quarter of 2016. Voluntary debt prepayments for the first six months of 2016 totaled $30 million.

The above estimates for the second quarter of 2016 are derived from preliminary internal financial reports and are subject to revision based on the completion of the quarter-end accounting and financial reporting process. Engility will report its complete results for the second quarter on August 1, 2016, including a reconciliation of net income to adjusted EBITDA.

Engility, a leading provider of mission-critical and highly technical services to the U.S. government, is engineered to make a difference. Built on a five-decade commitment to its customers and our country, Engility delivers world-class performance, efficiency and value in a broad range of services, including engineering and technology life cycle support, program and business support and specialized technical consulting.

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