H3C Holdings sets Thursday launch for $430 million term loan

By Sara Rosenberg

New York, March 26 - H3C Holdings Ltd., an indirect wholly owned subsidiary of 3Com Corp., is scheduled to hold a bank meeting on Thursday to launch its $430 million 51/2-year senior secured term loan, according to a market source.

Goldman Sachs is 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 expected to be Libor plus 200 bps, according to a recent filing with the Securities and Exchange Commission.

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 actually dated as of March 22, but will now be syndicated.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.