Sophos trims term B to $300 million, ups spread to Libor plus 525 bps

By Sara Rosenberg

New York, May 2 - Sophos Ltd. downsized its seven-year term loan B to $300 million from $320 million and raised pricing to Libor plus 525 basis points from Libor plus 450 bps, according to a market source.

Also, the original issue discount on the term loan B is set at 981/2, the wide end of the initial 98½ to 99 talk and 101 soft call protection for one year was added, the source said.

The 1.25% Libor floor was left unchanged.

As a result of the term loan B downsizing, the company's five-year term loan A was upsized to €80 million from €75 million, the source continued.

Pricing on the term loan A is Euribor plus 450 bps with no floor and a discount of 99.

The company's roughly $425 million equivalent credit facility (B2) also includes a $20 million five-year revolver priced at Libor plus 425 bps with no floor and a discount of 99.

Recommitments were due at the close of business on Wednesday, the source added.

J.P Morgan Securities LLC and RBC Capital Markets LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Sophos is an IT security and data protection firm that has headquarters in Burlington, Mass., and Oxford, England.

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