Elliott-Backed Cubic Revamps Debt in Deal That Adds Fresh Equity
The deal provides Cubic, which develops fare gate technology for public transportation systems and also has a defense unit, with a total of $275 million of new liquidity at closing, according to the release.
Photographer: David Dee Delgado/BloombergElliott Investment Management and Veritas Capital Fund Management-backed Cubic Corp. has reached an agreement with creditors to cut its debt load and extend maturities in a deal that will also see the private equity sponsors inject fresh equity into the struggling company.
As part of the transaction, holders of Cubic’s roughly $1.4 billion term loan B due 2028 will exchange their debt at par for a new first-lien loan that matures a year later, and will also provided new financing, according to people with knowledge of the terms. The deal reconfigures the loan’s repayment order to include new second-out and third-out priorities.