Moody’s rates Sophos loan B2

Moody’s Investors Service said it assigned a B2 rating to Sophos’ proposed $1.43 billion equivalent first-term loan and $125 million senior secured revolver. The loans will be issued by Surf Holdings LLC.

Proceeds from the first- and second-lien term loans will be used to repay debt and partially finance Thoma Bravo’s leveraged buyout of Sophos. The new holding company is Surf Intermediate II Ltd. Moody’s assigned Surf a B3 corporate family rating and a B3-PD probability of default rating.

“The B3 rating reflects Sophos’ leading position in the cybersecurity market, mostly in the small and medium-sized enterprise (SME) segment, supported by its convergent offering of end-point and network security products. The rating also benefits from the strong organic growth prospects of the business together with the potential cost savings as part of the LBO transaction,” said Luigi Bucci, Moody’s lead analyst for Sophos, in a press release.

The outlook is stable.

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