Cubic readies launch of $1.78 billion of term loans for Friday

By Sara Rosenberg

New York, April 15 – Cubic Corp. is scheduled to hold a lender call at 10 a.m. ET on Friday to launch $1.775 billion of senior secured term loans, according to a market source.

Barclays, Credit Suisse Securities (USA) LLC, BMO Capital Markets, KKR Capital Markets, Mizuho, RBC Capital Markets and Truist Securities Inc. are the bookrunners on the deal.

The debt is split between a $1.475 billion seven-year first-lien term loan B and a $300 million seven-year first-lien term loan C, the source said.

Included in the term loan debt is 101 soft call protection for six months.

Proceeds will be used to help fund the buyout of the company by Veritas Capital and Evergreen Coast Capital Corp. for $70.00 per share in cash. The all-cash transaction is valued at about $2.8 billion, including the assumption of debt.

Closing is expected in the second quarter, subject to customary conditions, including the receipt of shareholder and regulatory approvals.

Cubic is a San Diego-based provider of integrated solutions that increase situational understanding for transportation, defense C4ISR and training customers.

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