Computer SciencesCorp. and CSC Asset Funding I LLC on April 4 amended a master loan andsecurity agreement, securing a $150 million committed lease credit facility.
The amended agreement includes Banc of America Leasing &Capital LLC, as lender, and Bank of America NA, as administrative agent. Approximately$49 million remained outstanding in the previousagreement, dated May 28, 2014.
According to a Form 8-K filed April 7, the lease credit facilitywill finance certain capital expenditures of IT equipment and associated softwareused in support of IT services provided to Computer Sciences' customers. The drawdownperiod of the facility expires Nov. 29 and, once drawn, converts into individualterm notes of varying terms not to exceed 60 months, depending upon the nature ofthe underlying equipment being financed.
During the drawdown period, CSC Asset Funding will pay Banc ofAmerica Leasing & Capital a fee equal to 0.15% per annum on the average dailyamount of the undrawn commitments under the amended agreement payable in arrearsat the end of each fiscal quarter. The drawn principal amount of the notes willaccrue interest at the LIBOR rate plus 1.0% per annum. CSC Asset Funding's obligationsunder the lease credit facility are secured by the financed IT equipment and associatedsoftware and related assets, and are guaranteed by Computer Sciences.
Banc of America Leasing & Capital and Bank of Tokyo-MitsubishiUFJ Ltd. are the joint lead arrangers on the lease credit facility.
CSC Asset Funding is a special purpose subsidiary of CSC FinanceCo. LLC, which is a wholly owned subsidiary of Computer Sciences.