SonicWALL $155 million 1st-lien term loan expected at discount of 98

By Sara Rosenberg

New York, June 22 - SonicWALL Inc.'s proposed $155 million first-lien term loan is expected to launch with an original issue discount of 98, not at 98½ as was previously being whispered around the market, according to a source.

As before, price talk on the tranche is circulating at Libor plus 500 basis points with a 1.75% Libor floor.

The company's $260 million credit facility also includes a $105 million second-lien term loan that is being talked at Libor plus 900 bps with a 1.75% Libor floor and a discount of 98.

A bank meeting for the deal is set for Thursday.

Credit Suisse is the lead bank on the credit facility that will be used to help fund the acquisition of the company by Thoma Bravo LLC and Ontario Teachers' Pension Plan for $11.50 per share in cash. The transaction is valued at about $717 million.

Other funding will come from $280 million of equity and cash on hand.

Closing is expected to take place in the company's fiscal quarter ending Sept. 30 or early in the fiscal quarter ending Dec. 31, subject to regulatory and shareholder approvals.

SonicWALL is a San Jose, Calif.-based provider of IT security and data backup and recovery services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.