CPI Holdco, Inc. Agrees to Issue $80 Million of Floating Rate Senior Notes.PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif. -- CPI (1) (Characters Per Inch) The measurement of the density of characters per inch on tape or paper. A printer's CPI button switches character pitch. (2) (Counts Per I Holdco, Inc., the parent company of Communications & Power Industries, Inc., announced today it has agreed to issue and sell through a private placement $80.0 million of Floating Rate Senior Notes due 2015 (the "Notes"). The Notes require cash interest payments at an annual interest rate of LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 5.75%. If CPI Holdco chooses to pay interest through the issuance of additional Notes, the annual interest rate will increase by an additional 1% step-up, with the step-up increasing by an additional 1% for each interest payment made through the issuance of additional Notes (up to a maximum of 4%). Interest will be payable semiannually sem·i·an·nu·al adj. Occurring or issued twice a year. sem  i·an . CPI
Holdco intends to use the net proceeds Net ProceedsThe amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the offering to make payments to its stockholders and optionholders and/or to fund repurchases of its equity interests. The Notes will not be guaranteed by any of CPI Holdco's subsidiaries. The Notes will be offered within the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. only to qualified institutional buyers In law, a Qualified Institutional Buyer is a purchaser of securities that is financially sophisticated and is legally recognized by security market regulators to need less protection from sellers than most members of the public. pursuant to Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. under the Securities Act of 1933, as amended (the "Securities Act"), and to persons in offshore transactions in reliance on Regulation S under the Securities Act. The Notes will not be registered under the Securities Act, and, unless so registered, may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Subject to the satisfaction of closing conditions, CPI Holdco anticipates that the sale will be completed on or about February 22, 2005. This news release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which it would be unlawful. Communications & Power Industries, Inc. is a world leader in the development, manufacture and distribution of products used to generate, amplify and transmit high-power/high-frequency microwave and radio frequency signals. End-use applications of these systems include the transmission of radar signals for navigation and location; transmission of false signals for electronic countermeasures Noun 1. electronic countermeasures - electronic warfare undertaken to prevent or reduce an enemy's effective use of the electromagnetic spectrum ECM ; transmission and amplification of voice, data and video signals for broadcasting, internet and other types of communications; providing power and control for medical diagnostic imaging; generating microwave energy for radiation therapy in the treatment of cancer; and for various industrial and scientific applications. CPI Holdco, Inc. is the sole stockholder of Communications & Power Industries, Inc. CPI Holdco, Inc. is a privately-held portfolio company of The Cypress Group. The Cypress Group is a private equity investment firm managing more than $3.5 billion of capital. Cypress has an extensive track record of making growth-oriented investments in targeted industry sectors and building equity value alongside proven management teams. (C) 2005 Communications & Power Industries. All rights reserved. |
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