Gigamon to launch $450 million first-lien credit facilities Thursday

By Sara Rosenberg

New York, Nov. 28 – Gigamon Inc. scheduled a bank meeting for Thursday to launch its $450 million of first-lien senior secured credit facilities, according to a market source.

Jefferies LLC is the lead on the debt.

The facilities consist of a $50 million revolver and a $400 million seven-year first-lien term loan.

Included in the first-lien term loan is 101 soft call protection for six months, the source said.

The company is also getting a $150 million eight-year second-lien senior secured term loan that was privately placed.

Proceeds will be used to help fund the acquisition of the company by Evergreen Coast Capital Corp. (Elliott Management) for $38.50 per share in cash, for a total value of about $1.6 billion.

Other funds for the transaction will come from up to $838 million of equity.

Closing is expected in the first quarter of 2018, subject to customary conditions, including regulatory approvals and shareholder approval.

Gigamon is a Santa Clara, Calif.-based provider of active visibility into physical and virtual network traffic, enabling stronger security and performance.

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