Peraton obtains debt commitment letters backing acquisitions

Veritas Capital-backed Peraton Corp. has obtained commitment letters for the financing of two acquisitions.

Veritas Capital is acquiring Perspecta in an all-cash transaction that is valued at roughly $7.1 billion and then plans to combine it with existing portfolio company Peraton, which itself is merging with Northrop Grumman's federal IT and mission support services business that was recently acquired for $3.4 billion in cash.

Financing for these transactions is being provided J.P. Morgan and is outlined in commitment letters disclosed in a regulatory filing filed Jan. 27.

Peraton, the former government IT services business of Harris Corp. before Veritas bought the business in 2017, has a term loan B due April 2024 (L+525, 1% Libor floor) that totaled about $515 million following a $40 million fungible add-on in June 2019.

Perspecta has a first-lien term loan due May 2025 (L+225, 0% Libor floor) that totaled $489 million as of Oct. 2, 2020.

Veritas is already a significant investor in Perspecta and holds approximately 14.5% of the company's outstanding shares. Goldman Sachs and Stone Key Partners are serving as financial advisers to Perspecta in connection to the transaction.

Perspecta provides enterprise IT services to government customers in the U.S. federal, state and local markets. Peraton, based in Herndon, Va., is a provider of satellite and terrestrial communications to federal agencies and commercial entities.