CPI gets tenders for $38.175 million of floaters, calls $19.875 million more

By Angela McDaniels

Seattle, Aug. 1 - CPI International, Inc. said it accepted for purchase $38.175 million of its floating-rate senior notes due 2015.

A tender offer for up to $58 million of the notes expired at 8 a.m. ET on Wednesday. The offer began on July 3, and the deadline was extended from midnight ET on July 31.

The company will pay $1,030 per $1,000 principal amount of notes. Holders who tendered before 5 p.m. ET on July 16 will receive $1,032.50 per $1,000 principal amount, which includes an early tender premium of $2.50 per $1,000.

Holders will also receive accrued interest up to the settlement date, which is expected to be Thursday.

In addition, CPI will redeem $19.825 million of the remaining outstanding notes on Sept. 5 at a price of $1,030 per $1,000 principal amount, plus accrued interest up to but excluding the redemption date.

After the redemption, $22 million of the notes will remain outstanding.

The tender offer was contingent on Communications & Power Industries, Inc. entering into amended or new senior credit facilities providing for at least $100 million of proceeds by the settlement date.

The company announced on Wednesday that it had entered into a new senior credit facility consisting of a $100 million term loan and a $60 million revolving credit facility.

The information agent was Global Bondholder Services (866 807-2200 or 212 430-3774), and the dealer manager was UBS Securities LLC (888 722-9555, ext. 4210).

CPI, based in Palo Alto, Calif., is the parent company of Communications & Power Industries, a provider of microwave, radio frequency, power and control solutions for defense, communications, medical and scientific industries.

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