Sophos sets term loan A at $75 million euro equivalent, term loan B at $225 million

By Sara Rosenberg

New York, June 11 - Sophos plc firmed tranche sizes on its $300 million of term loan debt, with the term loan A ending up at $75 million euro equivalent and the term loan B ending up at $225 million, according to a market source.

Initial indications were that the term debt would be comprised of a $90 million A loan and a $210 million B loan; however, those sizes were labeled as preliminary and likely to change.

The term loans are being talked in the Libor plus 475 basis points area with a 2% Libor floor and an original issue discount in the 99 context, but revised talk is expected to come out early in the week of June 14, the source said.

Sophos' $320 million senior secured credit facility (B2/B+) also includes a $20 million six-year revolver.

RBC and HSBC are the lead banks on the deal, with RBC the left lead.

Proceeds will be used to help fund the buyout of the company by Apax Partners in a transaction valued 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.

Leverage is around 3.8 times.

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

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