SubCom launches $730 million term loan at Libor plus 475-500 bps

By Sara Rosenberg

New York, April 6 – SubCom launched on Tuesday its $730 million six-year first-lien term loan (B1/B) with price talk of Libor plus 475 basis points to 500 bps with a 25 bps step-down at 3.05x net first-lien leverage, a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 5% per annum, the source said.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Jefferies LLC, Morgan Stanley Senior Funding Inc. and MUFG are the bookrunners on the deal.

Commitments are due at 5 p.m. ET on April 19, the source added.

Proceeds will be used to fund a dividend to shareholders.

Cerberus is the sponsor.

SubCom is an Eatontown, N.J.-based provider of turnkey subsea fiber optic networks with engineering, manufacturing, installation and maintenance capabilities.

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