CPI trims pricing on $150 million term loan to Libor plus 400 bps

By Sara Rosenberg

New York, Jan. 28 - CPI International Inc. lowered pricing on its $150 million six-year term loan to Libor plus 400 basis points from Libor plus 450 bps, according to a market source.

In addition, the Libor floor was reduced to 1% from 1.75% and the original issue discount decreased to 99½ from 99, the source said.

Recommitments are due at 5 p.m. ET on Monday.

The company's $180 million senior secured credit facility (B+) also includes a $30 million five-year revolver.

UBS Investment Bank is the lead bank on the deal. KKR Capital Markets LLC has signed on as syndication agent.

Proceeds, along with $215 million of senior notes and $220 million of equity, will be used to fund the buyout of the company by Veritas Capital for $19.50 per share in cash and refinance existing debt. The transaction is valued at roughly $525 million.

Closing is targeted for Feb. 11, subject to stockholder approval, which will be sought at a special meeting on Feb. 10, and a number of customary regulatory and other conditions. The transaction is not subject to financing.

CPI is a Palo Alto, Calif.-based provider of microwave, radio frequency, power and control services for critical defense, communications, medical, scientific and other applications.

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