Veracode updates spread and OID talk on $580 million term loan

By Sara Rosenberg

New York, April 14 – Veracode (Mitnick Corporate Purchaser Inc.) revised price talk on its $580 million seven-year first-lien term loan (B2/B/BB-) to SOFR+10 basis points CSA plus 400 bps from talk in the range of 400 bps to 425 bps, according to a market source.

In addition, 25 bps step-down at 0.5x inside closing first-lien net leverage was removed from the term loan, leaving one 25 bps step-down at 0.75x inside closing first-lien net leverage, and the original issue discount talk was changed to a range of 99 to 99.5 from 98.5, the source said.

The term loan still has a 0.5% floor and 101 soft call protection for six months.

Deutsche Bank Securities Inc. is the left lead bookrunner and administrative agent on the deal.

Commitments are due at noon ET on Tuesday, accelerated from noon ET on Wednesday, the source added.

Proceeds will be used to help fund the buyout of the company by TA Associates in a transaction that values Veracode at $2.5 billion. Veracode’s current majority investor, Thoma Bravo, will retain a minority position in the business.

Closing is expected this quarter, subject to customary conditions.

Veracode is a Burlington, Mass.-based provider of application security solutions.

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