H3C Holdings gets $430 million term loan

By Sara Rosenberg

New York, March 23 - H3C Holdings Ltd., an indirect wholly owned subsidiary of 3Com Corp., closed on a new $430 million 51/2-year senior secured term loan, according to an 8-K filed with the Securities and Exchange Commission Friday.

Goldman Sachs acted as the lead arranger, bookrunner, administrative agent and syndication agent on the deal.

Pricing on the term loan can range from Libor plus 150 to 225 basis points, based on the company's leverage ratio. The initial interest rate is Libor plus 200 bps.

Financial covenants include a minimum debt service coverage, minimum interest coverage, maximum capital expenditures and a maximum total leverage ratio.

Proceeds will be used to finance a portion of the purchase price for 3Com's acquisition of 49% of its China-based joint venture, Huawei-3Com Co., Ltd., from an affiliate of Huawei Technologies.

The term loan is dated as of March 22.

3Com is a Marlborough, Mass.-based provider of secure and converged networking services to various organizations.

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