SubCom finalizes $730 million term loan at Libor plus 500 bps

By Sara Rosenberg

New York, April 20 – SubCom firmed pricing on its $730 million six-year first-lien term loan (B1/B) at Libor plus 500 basis points, the high end of the Libor plus 475 bps to 500 bps talk, according to a market source.

In addition, the 101 soft call protection on the term loan was extended to one year from six months, MFN was revised to 50 bps for 12 months from 75 bps for six months, the inside maturity basket was removed, the asset sale step-downs from 100% were removed, and quarterly lender calls are now required, the source said.

The term loan still has a 25 bps step-down at 3.05x net first-lien leverage, a 0.75% Libor floor, an original issue discount of 99 and amortization of 5% per annum.

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.

Recommitments were scheduled to be due at 11 a.m. ET on Tuesday, 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.

© 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.