SubCom lifts term loan B to $1.4 billion, firms at SOFR plus 475 bps

By Sara Rosenberg

New York, Jan. 26 – SubCom upsized its seven-year term loan B (B1/B+) to $1.4 billion from $1.35 billion and set pricing at SOFR plus 475 basis points, the low end of the SOFR plus 475 bps to 500 bps talk, according to a market source.

The term loan still has a 0.75% floor, an original issue discount of 99, 101 soft call protection for six months and amortization of 1% per annum.

Goldman Sachs Bank USA is the left lead arranger on the deal.

Recommitments were scheduled to be due at 10 a.m. ET on Friday, the source added.

Proceeds will be used to refinance an existing $585 million first-lien term loan due April 2027 and a $458 million incremental first-lien term loan due April 2027, and to fund a distribution to shareholders.

Cerberus Capital Management is the sponsor.

SubCom is an Eatontown, N.J.-based subsea fiber optic cable turnkey service provider.

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