By Paul A. Harris
Portland, Ore., Feb. 3 - CPI International Acquisition, Inc. priced a $215 million issue of seven-year senior notes (B3/CCC+/) at par to yield 8% on Thursday, according to an informed source.
UBS Investment Bank ran the books.
The yield printed 25 basis points through the 8¼% to 8½% price talk.
Proceeds, together with a new credit facility and equity from Veritas Fund and affiliates, will be used to fund the acquisition of CPI International and its subsidiaries by Veritas Capital for $19.50 per share in cash. The transaction is valued at roughly $525 million.
CPI International is a Palo Alto, Calif.-based provider of microwave, radio frequency, power and control services for critical defense, communications, medical, scientific and other applications.
| Issuer: | CPI International Acquisition, Inc.
|
| Amount: | $215 million
|
| Maturity: | Feb. 15, 2018
|
| Securities: | Senior notes
|
| Bookrunner: | UBS Investment Bank
|
| Co-manager: | KKR Capital Markets
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 512.2 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2015, then callable at 104, 102, par on and after Feb. 15, 2017
|
| Trade date: | Feb. 3
|
| Settlement date: | Feb. 11
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 8¼% to 8½%
|
| Marketing: | Roadshow
|
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