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Gigamon talks $400 million first-lien term loan at Libor plus 450 bps
By Sara Rosenberg
New York, Nov. 30 – Gigamon Inc. launched on Thursday its $400 million seven-year covenant-light first-lien term loan with price talk of Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.
The first-lien term loan has 101 soft call protection for six months.
Commitments are due on Dec. 18, the source said.
The company’s $600 million of senior secured credit facilities also include a $50 million revolver and a $150 million privately placed eight-year second-lien senior secured term loan.
Jefferies LLC is the lead on the debt.
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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