| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers C > Headlines for Comtech Telecommunications Corp. > News item |
Comtech closes $400 million agreement for TeleCommunication buy
By Tali Rackner
Norfolk, Va., March 1 – Comtech Telecommunications Corp. entered into a credit agreement on Feb. 23 with Citibank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
The credit agreement provides for a $250 million senior secured term A loan facility and an up to $150 million senior secured revolving loan facility with a $25 million letter-of-credit sublimit.
Both facilities mature Feb. 23, 2021.
Borrowings under the facilities bear interest at Libor plus 225 basis points to 375 bps, based on the company’s leverage ratio. The commitment fee ranges from 35 bps to 50 bps, also depending on leverage.
The initial rate is Libor plus 325 bps with a fee of 45 bps.
Citibank and Manufacturers and Traders Trust Co. were joint lead arrangers and joint bookrunners. Manufacturers and Traders was syndication agent.
The facilities were used to finance in part the acquisition of TeleCommunication Systems, Inc. and its subsidiaries and were and are intended to be used to pay related transaction fees and expenses. Proceeds from the revolver will be used for working capital and other general corporate purposes of the company and its subsidiaries, including the issuance of letters of credit and the repayment of certain existing debt.
Covenants include a maximum total net leverage ratio and a minimum fixed charge coverage ratio.
Comtech is a Melville, N.Y.-based designer, developer, producer and marketer of products, systems and services for advanced communications solutions. TeleCommunication Systems is an Annapolis, Md.-based provider of wireless communications solutions.
© 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.