Financial definitions and terms

Booz allen readies $225b dividend recap loan


´╗┐July 11 - Booz Allen & Hamilton Inc will launch $2.25 billion in credit facilities at a bank meeting on Thursday, sources told Thomson Reuters LPC. The company will use the proceeds to refinance existing debt and fund a $1 billion dividend to shareholders. The bank loan will consist of a $500 million secured revolving credit facility, a $500 million secured term loan A and a $1.25 billion term loan B, sources said. Bank of America Merrill Lynch is leading the loan along with Credit Suisse. Barclays Capital, Citi, HSBC, JP Morgan, Morgan Stanley and Sumitomo Mitsui are also arranging the loan.

The revolving credit and term loan A will be priced at 275bp over LIBOR, subject to a leveraged-based pricing grid. Price talk on the term loan B has not yet been disclosed. The TLB will carry a 1 percent LIBOR floor and carry soft call protection for one year.

The revolver and TLA will mature in December 2017 while the TLB will mature in 2019. Covenants will include a maximum consolidated net total leverage ratio and a minimum consolidated interest coverage ratio.

The TLA will amortize at a rate of 5 percent the first year, 7.5 percent the second year, 10 percent the third year, 12.5 percent the fourth year and 65 percent in the fifth year. The TLB will amortize at 1 percent per year. Corporate family ratings and facility ratings are expected to be Ba3/BB. Headquartered in McLean, Virginia, Booz Allen is a provider of management and technology consulting services to the U.S. government in defense, intelligence, and civil markets, and to corporations, institutions and not-for-profit organizations.

Chinas cabinet issues guidance on internet finance risk management


´╗┐BEIJING Oct 13 China's cabinet has issued guidance on managing the risks of internet financing, according to a document seen on its website on Thursday.

The document includes guidance on tightening regulations on peer-to-peer lending, online asset management, third-party payments and advertisements on the online financial sector.