- Huntington Ingalls Industries Inc HII has priced senior notes offering of $400 million 0.670% Senior Notes due 2023, and $600 million 2.043% Senior Notes due 2028.
- The notes offering is part of the financing for the previously announced acquisition of Alion Science and Technology under a Stock Purchase Agreement dated July 4, 2021.
- Huntington intends to use the net proceeds from the Notes Offering, together with borrowings under its term loan credit facility, to fund the purchase price for the Alion Acquisition. It had agreed to acquire Alion Science and Technology for $1.65 billion in cash from Veritas Capital.
- The transaction represents an enterprise value-to-expected 2022 adjusted EBITDA multiple of ~12.2x. Alion will become part of Huntington Ingalls Industries Technical Solutions division. The transaction is expected to close in the second half of 2021.
- The acquisition will be significantly cash flow accretive in FY22 and GAAP EPS accretive in FY23.
- Price Action: HII shares are trading lower by 0.26% at $204.61 after hours on the last check Monday.
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