CPI International discloses first- and second-lien term loan talk

By Sara Rosenberg

New York, July 18 – CPI International Inc. released price talk on its $450 million seven-year first-lien term loan and $120 million eight-year second-lien term loan with its bank meeting on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 350 basis points to 375 bps with a 1% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 750 bps to 775 bps with a 1% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $605 million of credit facilities also provide for a $35 million five-year revolver.

UBS Investment Bank is the lead bank on the deal.

Commitments are due on July 25.

Proceeds will be used to help fund the buyout of the company by Odyssey Investment Partners from Veritas Capital.

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

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