News & Events

CPI Enters Into Commitment Letter for New Credit Facility

PALO ALTO, Calif., July 24 /PRNewswire-FirstCall/ -- CPI International, Inc. (Nasdaq: CPII) and its subsidiary, Communications & Power Industries, Inc. (CPI), a leading provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications, have entered into a commitment letter with UBS Loan Finance LLC, UBS Securities LLC, Bear Stearns & Co., Bear Stearns Corporate Lending Inc., the Royal Bank of Scotland PLC and RBS Securities Corporation to provide a new senior credit facility to CPI in an aggregate amount of $160 million, consisting of a term loan of $100 million and a revolving facility of $60.0 million.

On July 2, 2007, CPI International commenced a cash tender offer for up to $58.0 million in aggregate principal amount of its Floating Rate Senior Notes due 2015 (Notes). The initial borrowing under CPI's new credit facility is expected to be $100 million. The initial borrowing would be used to refinance CPI's existing senior credit facility and fund the repurchase or redemption of up to $58.0 million aggregate principal amount of Notes, including Notes tendered in the tender offer.

The commitment letter is subject to usual and customary conditions, not including a due diligence condition, and the new credit facility is expected to close during the week of July 30, 2007.

About CPI International, Inc.

CPI International, Inc., headquartered in Palo Alto, California, is the parent company of Communications & Power Industries, Inc., a leading provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications. Communications & Power Industries, Inc. develops, manufactures and distributes products used to generate, amplify and transmit high-power/high-frequency microwave and radio frequency signals and/or provide power and control for various applications. End-use applications of these systems include the transmission of radar signals for navigation and location; transmission of deception signals for electronic countermeasures; 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; and generating microwave energy for radiation therapy in the treatment of cancer and for various industrial and scientific applications.

Certain statements included above constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements provide our current expectations, beliefs or forecasts of future events. Forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual events or results to differ materially from the results projected, expected or implied by these forward looking statements. These factors include, but are not limited to, our ability to consummate the described bank financing on reasonable terms, competition in our end markets; our significant amount of debt; changes or reductions in the U.S. defense budget; U.S. government contracts laws and regulations; changes in technology; the impact of unexpected costs; inability to obtain raw materials and components; and currency fluctuations. These and other risks are described in more detail in our periodic filings with the Securities and Exchange Commission. As a result of these uncertainties, you should not place undue reliance on these forward-looking statements. All future written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. We undertake no duty or obligation to publicly revise any forward-looking statement to reflect circumstances or events occurring after the date hereof or to reflect the occurrence of unanticipated events or changes in our expectations.

SOURCE CPI International, Inc. - 07/24/2007

Amanda Mogin of Communications & Power Industries, Inc., Investor Relations,
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