A Short Narrative On The Separately Managed Accounts

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.

Paying Your Bills On Time


How many monthly bills do you get? You may have a mortgage bill, a car payment, heating, electricity, gas, telephone, television, and that doesn’t even begin with your credit card and store card payments. The fact of the matter is that people today have more monthly commitments than ever before. And with all these various bills it is very easy to forget to pay one on time.

Then there is the wholly separate issue of whether or not you can afford all your bills. Sometimes we may simply have over extended ourselves financially and in such situations we may not be able to pay all of our bills as they fall due. And what if you were to lose your job, or become ill or otherwise unable to work? Even if this is only for a short time, you will have some very real problems meeting all your monthly bills.

Penalties

This can be disastrous. First of all most creditors will slap late payment penalties and other administrative charges to your account if you are late. Some may recall or try to repossess assets if they have security over them. This is most serious in the case of your house but can also apply to your car or any other purchase you have made by instalments such as a television, or computer.

How can you provide for such an outcome? Well having some savings is a very good start. This should be able to cushion you for a few months should you lose your job. Then there is the fact that it is perhaps not so wise to rack up so many commitments that you can’t reduce your outgoings at short notice.

Insurance Protection

Another option to consider is payment protection insurance. This can be very helpful and is designed specifically for situations such as these. How it works is you pay an amount extra on top of your monthly bill. This is automatically added to your bill and depends on how much you have outstanding for each bill. For example, payment protection insurance on a credit card might be priced at Ј1 per Ј100 you have outstanding. What happens then is should you lose your job through no fault of your own, or should you become unable to work due to accident or illness, then the insurance should step in and make your repayments for you so that you don’t fall behind and rack up extra fees. This can be a great assistance to you financially, at a time when you need it most.