SubCom trims first-lien term loan to $405 million, lifts pricing

By Sara Rosenberg

New York, Oct. 29 – SubCom (Crown Subsea Communications Holding Inc.) downsized its seven-year covenant-light first-lien term loan to $405 million from $450 million and raised pricing to Libor plus 600 basis points from talk in the range of Libor plus 500 bps to 525 bps, according to a market source.

In addition, the original issue discount on the term loan was revised to 98 from 99, the 101 soft call protection was extended to one year from six months and amortization was increased to 5% per annum from 1%, the source said.

The term loan still has a 0% Libor floor.

The company’s now $505 million of credit facilities (B1/B), down from $550 million, also include a $100 million revolver.

Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC and Jefferies LLC are the leads on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Monday.

Proceeds will be used to help fund the buyout of the company by Cerberus Capital Management LP from TE Connectivity Ltd.

The term loan was downsized due to an increase in the Surety Bonding Program, the source added.

Closing is expected this quarter, subject to customary conditions.

SubCom is an Eatontown, N.J.-based supplier of subsea communications systems.

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