AECOM to issue US$1.6 billion in senior notes to pay for URS Corporation

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AECOM to issue US$1.6 billion in senior notes to pay for URS Corporation

AECOM announced last week its intention to offer, subject to market and other conditions, US$1.6 billion in senior notes maturing in 2022 and 2024.

AECOM intends to use the net proceeds from the offering of the senior notes, together with cash on hand and borrowings under its new senior secured credit facilities, to repay certain existing indebtedness and to fund all of the cash consideration of the proposed acquisition of URS Corporation.

In mid July AECOM and URS Corporation announced the execution of a definitive agreement under which AECOM will acquire all outstanding shares of URS for a combination of cash and stock valued at approximately US$4 billion, based on the AECOM closing share price as of July 11, 2014.

Including the assumption of URS debt, the total enterprise value of the transaction is approximately US$6 billion.

The combined company will be a leading, fully integrated infrastructure and federal services provider with more than 95,000 employees in 150 countries. It would have calendar year 2013 pro forma revenues of more thanUS$19 billion and EBITDA of approximately US$1.3 billion.

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