Veritas Said to Seek $180 Million in Loans for CPI
Veritas Capital will meet with lenders Jan. 12 to discuss $180 million of loans to back the purchase of Communications & Power Industries Inc., according to a person familiar with the deal.
The debt is split between a five-year, $30 million revolving line of credit and a six-year, $150 million term loan, said the person, who declined to be identified because the terms are private. UBS AG is arranging the financing, and KKR Capital Markets will be syndication agent, the person said.
CPI International Inc., the Palo Alto, California-based parent company of Communications & Power Industries, said Nov. 26 it agreed to be acquired by Veritas for $19.50 a share in cash, valuing the transaction at about $525 million, according to a news release.
Amanda Mogin, investor relations at CPI, and Robert McKeon, founder and chairman of Veritas, didn’t immediately return telephone calls seeking comment.
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