CPI finalizes $195 million term loan at Libor plus 475 bps

By Sara Rosenberg

New York, Oct. 2 – CPI International Inc. (Communications & Power Industries) allocated on Tuesday its non-fungible $195 million incremental covenant-lite first-lien term loan (B3/B) due July 26, 2024 at pricing of Libor plus 475 basis points, the high end of the Libor plus 450 bps to 475 bps talk, according to a market source.

The term loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

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

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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