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CPI International gets tenders for 73% of 8¾% notes, enough to amend
By Susanna Moon
Chicago, March 16 – CPI International Inc. said investors had tendered $156,375,000 principal amount, or 72.73%, of its $215 million principal amount of outstanding 8¾% senior notes due 2018 as of the consent deadline at 5 p.m. ET on March 15.
As a result, CPI secured the needed consents to approve the proposed amendments and waivers to the note indenture and executed the supplemental indenture, which will become operative once the tendered notes are settled, according to a company announcement.
The company began the cash tender offer and consent solicitation on March 3 in connection with the refinancing of the notes.
The tender offer will remain open until 11:59 p.m. ET on March 29. The withdrawal deadline was 5 p.m. ET on March 15.
The total purchase price will be $1,012.50 for each $1,000 principal amount of notes tendered by the consent payment deadline.
The total amount includes a consent payment of $12.50 per $1,000 principal amount.
Holders who tender after the consent deadline will receive par for each $1,000 principal amount.
The issuer also will pay accrued interest to but excluding the settlement date.
Holders who tender their notes will be deemed to have given their consents. Holders may not deliver consents without also tendering notes.
The tender offer is contingent on the company securing financing for the repurchase and receiving consents and tenders from holders of a majority of the outstanding notes and execution of the supplemental indenture.
CPI said it plans to call for redemption any notes not tendered in the offer at a redemption price of 101 plus accrued interest to the redemption date.
UBS Securities LLC (888 719-4210 or 203 719-4210) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 470-4500) is the depositary and information agent.
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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