| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for SonicWALL Inc. > News item |
SonicWALL lifts spread, floor, discount on first-, second-lien loans
By Sara Rosenberg
New York, July 12 - SonicWALL Inc. increased pricing on its $15 million revolver (Ba3/BB-) and $155 million 51/2-year first-lien term loan (Ba3/BB-) to Libor plus 625 basis points from Libor plus 500 bps, and on its $105 million 61/2-year second-lien term loan to Libor plus 1,000 bps from Libor plus 900 bps, according to a market source.
In addition, the Libor floor on all tranches was raised to 2% from 1.75%, and the original issue discount on all tranches was widened to 97 from 98.
Also, the first-lien term loan now has 101 soft call protection for one year as opposed to no call protection, and the initial excess cash flow sweep was increased to 75% from 50%, the source said.
And, call protection on the second-lien term loan was revised to non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four, from 103 in year one, 102 in year two and 101 in year three.
Credit Suisse is the lead bank on the $275 million deal.
Commitments are due at 2 p.m. ET on Friday.
Proceeds 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. The transaction is not subject to a financing condition.
A special meeting for shareholders to vote on the buyout will be held on July 23.
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.