Credit Suisse First Boston last week launched syndication of a $175 million asset-based revolver for Antec Corporation. The three-year loan is grid priced at LIBOR plus 31/4 %, with a commitment fee of 1/2%. CIT Group is administration agent. The loan backs Antec's proposed acquisition of Nortel Network's ownership interest in Arris Interactive L.L.C., and working capital needs following, said Jim Bauer, head of investor relations. The acquisition is awaiting approval from the Securities and Exchange Commission.
The loan replaces a $120 million revolver with Bank of New York and Bank of America, according to Capital DATA Loanware. Bauer declined comment on the choice of bank group, but said the revolver structure is necessary due to the seasonal nature of the business. Antec is a Duluth, Ga.-based telecommunications and telephony equipment maker, specializing in the manufacturing and distribution of products for hybrid fiber-coax broadband networks as well as the design and engineering of these networks.
"In the winter, when the temperature is below 20 degrees, frost prevents digging, and construction is less busy. Spring and summer sees budgets approved and tornadoes and adverse weather destroying plants. It is necessary to rebuild overnight and the cash has to be there," Bauer stated. "I don't like to say it, but bad weather is good for business." After the acquisition, Antec and Arris will become subsidiaries of a newly formed holding company tentatively named Arris Group, Inc., Bauer said.