By Lisa Kerner
Charlotte, N.C., March 14 - Cubic Corp. agreed to issue $100 million of senior notes under a March 12 note purchase and private shelf agreement with Prudential Investment Management, Inc. and some Prudential affiliates, according to an 8-K filing with the Securities and Exchange Commission.
The notes will be issued as:
• $50 million of 3.35% series A notes due 2025; and
• $50 million of 3.35% series B notes due 2025.
The series A notes were purchased on March 12, and the series B notes will be purchased on or about April 23.
Proceeds from the sale of both series of notes will be used to refinance existing debt, for working capital and for other general corporate purposes, the filing said.
Under the agreement, Cubic may from time to time issue and sell, and the purchasers may purchase, up to $25 million of additional notes within the next three years.
The company may prepay at any time all, or from time to time any part of, the notes of any series in an amount not less than $5 million and increments of $100,000 in excess thereof at par plus a make-whole amount.
Cubic will not, under the agreement, permit the ratio of consolidated EBITDA to consolidated cash interest expense to be less than 3.00 to 1.00 and will not permit the leverage ratio at the end of any fiscal quarter to be greater than 3.25 to 1.00.
Cubic, based in San Diego, provides realistic combat training systems and defense electronics. It is the parent company of Defense Systems, Mission Support Services and Transportation Systems.
| Issuer: | Cubic Corp.
|
| Issue: | Senior notes
|
| Amount: | $100 million
|
| Call option: | At par plus make-whole amount
|
| Distribution: | Private placement
|
| Purchasers: | Prudential Investment Management, Inc. and affiliates
|
|
|
| Series A
|
| Amount: | $50 million
|
| Maturity: | March 12, 2025
|
| Coupon: | 3.35%
|
| Settlement date: | March 12
|
|
|
| Series B
|
| Amount: | $50 million
|
| Maturity: | March 12, 2025
|
| Coupon: | 3.35%
|
| Settlement date: | On or before April 23
|
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