Sophos to launch $320 million senior secured facility on Tuesday

By Sara Rosenberg

New York, May 21 - Sophos plc is set to launch a $320 million senior secured credit facility on Tuesday, according to a market source.

RBC is the lead arranger on the deal.

The facility consists of a $20 million six-year revolver and a $300 million seven-year term loan, the source said, adding that price talk is not yet available.

The deal will be comprised of both dollar and euro debt.

Leverage is around 3.8 times.

Proceeds will be used to help fund the buyout of the company by Apax Partners in a transaction valuing Sophos at $830 million.

When the transaction is completed, the founders of the company will retain a significant minority shareholding. TA Associates, a minority shareholder in Sophos since 2002, will sell its full interest to Apax in this transaction.

In its fiscal year ended March 31, the company had billings in excess of $330 million, revenue in excess of $260 million and generated unlevered free cash flow of about $55 million.

Sophos is a Boston-based IT security and data protection firm.

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