Narrative
Full Description
Project narrative
On May 31, 2018, financial close was reached on a deal in which a syndicate of 38 banks — including Bank of China — entered into a $3,100,000,000 USD syndicated loan agreement with Perspecta Inc., a Nevada-based government services company that provides IT and mission services to U.S. government customers. This loan was divided into three tranches: Tranche A1, maturing on May 31, 2021; Tranche A2, maturing on May 31, 2023; and Term Loan B, maturing on May 31, 2025. The interest rate was LIBOR plus an applicable margin. The use of proceeds is general corporate purposes and to refinance the spin-off transaction separating its U.S. Public sector business from the rest of the company. While Bank of China contributed an undisclosed amount to this loan (Record ID#107692), the following lenders also participated: MUFG Bank, Ltd.; MUFG Union Bank, N.A.; Bank of America, N.A.; JPMorgan Chase Bank, N.A.; Mizuho Bank, Ltd.; Royal Bank of Canada; The Bank of Nova Scotia; Fifth Third Bank; Lloyds Bank PLC; PNC Bank, National Association; Sumitomo Mitsui Banking Corporation; TD Bank, N.A.; Wells Fargo Bank, National Association; Capital One National Association; Regions Bank; U.S. Bank National Association; Citizens Bank N.A.; Santander Bank N.A.; Barclays Bank PLC; Bayerische Landesbank; State Bank of India; Goldman Sachs Bank USA; First National Bank of Pennsylvania; People’s United Bank, National Association; United Bank; Apple Bank for Savings; Citibank, N.A.; Bank of Taiwan; Taiwan Cooperative Bank; Stifel Bank & Trust; Credit Industriel et Commercial; Taiwan Business Bank Ltd.; Chang Hwa Commercial Bank, Ltd.; Land Bank of Taiwan; Mega International Commercial Bank Co., Ltd.; Banco de Sabadell, S.A.; and Cathay Bank.
Staff comments
1. The entirety of the 2018 loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/1724670/000119312518185743/d452443dex101.htm. The dropbox link is accessible here: https://www.dropbox.com/scl/fi/2fiaz0eko84fdd63tnoy3/Source_ID_216189.pdf?rlkey=xi3ayuehvs2352dg42tmjsg9d&st=o1kp3eww&dl=0 2. Perspecta Inc. was an American government services company formed in 2018 through the merger of Vencore, KeyPoint Government Solutions, and DXC Technology’s U.S. Public Sector business. It provided IT services to U.S. government clients until it was acquired by Peraton in 2021. 3. AidData estimates the average interest rate by adding the 6-month average LIBOR rate in May 2018 and an applicable margin across the three loans. AidData estimates the average maturity across the three tranches by taking the average of the maturities. 4. AidData assumes Bank of China participated in all three tranches of the loan. This issue warrants more investigation. 5. The individual contributions of the 36 lenders to this $3.1 billion USD syndicated loan are unknown. For the time being, AidData has estimated the contribution of Bank of China by assuming that each lender contributed an equal amount ($86111111.1111) to the loan syndicate.