SafeNet talks $150 million incremental term B at Libor plus 450 bps

By Sara Rosenberg

New York, March 15 - SafeNet Inc. is talking its $150 million incremental first-lien term loan B (B1) due 2018 at Libor plus 450 basis points with a 1.25% Libor floor and an original issue discount of 981/2, according to a market source.

The term loan B includes 101 soft call protection for one year, the source said.

Proceeds from the incremental debt will be used to fund a distribution to shareholders.

With the new debt, the company is seeking an amendment and extension of its $25 million revolver due 2013, $236 million first-lien term loan B due 2014 and $131 million second-lien term loan due 2015.

The extended term loan B (B1) due 2017 is talked at Libor plus 450 bps and lenders are being offered a 37.5 bps fee, the source continued.

And, the extended second-lien term loan (Caa1) due 2016 is talked at Libor plus 800 bps with 101 hard call protection for two years, the source added. Lenders are being offered a 150 bps fee.

As for the revolver, the company is asking to extend the debt to 2016.

Commitments are due on March 23.

J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are the lead banks on the deal that launched with a call on Wednesday afternoon.

SafeNet is a Belcamp, Md.-based provider of information security software and encryption technology.

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