McAfee/FireEye changes $925 million term loan OID talk to 99.5

By Sara Rosenberg

New York, July 26 – McAfee Enterprise/FireEye Products revised original issue discount talk on its $925 million incremental first-lien term loan B (B2) due 2028 to 99.5 from talk in the range of 99 to 99.5, according to a market source.

Pricing on the incremental term loan is Libor plus 500 basis points with a 0.75% Libor floor.

UBS Investment Bank, Jefferies LLC, BofA Securities Inc., HSBC Securities (USA) Inc. and KKR Capital Markets are the joint lead arrangers on the deal.

Commitments continue to be due at 5 p.m. ET on Tuesday, the source added.

The company is also getting a $175 million second-lien term loan (Caa2) that has been pre-placed.

Proceeds will be used to help fund the acquisition of FireEye Products by a consortium led by Symphony Technology Group for $1.2 billion from FireEye Inc.

Symphony Technology Group intends to combine FireEye Products with McAfee Enterprise.

Closing on the FireEye acquisition is expected by the end of the fourth quarter, subject to regulatory approvals and customary conditions.

Neither acquisition is conditioned on completion of the other.

McAfee Enterprise is a provider of device-to-cloud cybersecurity solutions. FireEye Products is a provider of network, e-mail, endpoint and cloud security products.

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