SubCom launches $450 million term loan at Libor plus 500-525 bps

By Sara Rosenberg

New York, Oct. 15 – SubCom (Crown Subsea Communications Holding Inc.) launched on Monday its $450 million seven-year covenant-light first-lien term loan with price talk of Libor plus 500 basis points to 525 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

The company’s $550 million of credit facilities (B1/B) 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.

Commitments are due on Oct. 26, the source added.

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

Closing is expected in the fourth quarter, subject to customary conditions.

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

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