CPI launches $195 million term loan at Libor plus 450-475 bps

By Sara Rosenberg

New York, Sept. 11 – CPI International Inc. (Communications & Power Industries) launched on Wednesday its non-fungible $195 million incremental first-lien term loan (B3/B) due July 26, 2024 with price talk of Libor plus 450 basis points to 475 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

UBS Investment Bank, Antares Capital, Golub, ING Capital and KKR Capital Markets are the bookrunners on the deal.

Commitments are due on Sept. 25, the source added.

Proceeds will be used to fund the acquisition of Satcom Technologies from General Dynamics Mission Systems Inc.

Closing is expected before the end of the year, subject to customary conditions.

CPI, a portfolio company of Odyssey Investment Partners, is a Palo Alto, Calif.-based manufacturer of electronic components and subsystems focused primarily on communications and defense markets. Satcom is a designer, manufacturer and installer of satellite communications antenna systems, and a provider of related radio frequency products and electronics.

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