CPI International: Wednesday launch for $180 million credit facility

By Sara Rosenberg

New York, Jan. 10 - CPI International Inc. has scheduled a bank meeting for Wednesday at 2 p.m. ET at the W Hotel in New York to launch its proposed $180 million senior secured credit facility, according to a market source.

UBS Investment Bank is the lead bank on the deal. KKR Capital Markets LLC has signed on as syndication agent.

The facility consists of a $150 million six-year term loan and a $30 million five-year revolver, with price talk not yet available, the source said.

Proceeds will be used to help fund the buyout of the company by Veritas Capital for $19.50 per share in cash. The transaction is valued at roughly $525 million.

Previously, the company had said in filings with Securities and Exchange Commission that the facility would be sized at $178 million, comprised of a $148 million term loan and a $30 million revolver.

Those filings also said that other funding for the deal would come from $215 million of senior notes that are backed by a commitment for a $215 million senior unsecured bridge loan and from $220 million of equity.

Closing is subject to stockholder approval and a number of customary regulatory and other conditions. The transaction is not subject to any financing conditions.

CPI is a Palo Alto, Calif.-based provider of microwave, radio frequency, power and control services for critical defense, communications, medical, scientific and other applications.

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