Sophos widens term loan B discount to 96, carves out $25 million euro-equivalent tranche

By Sara Rosenberg

New York, June 28 - Sophos plc increased the original issue discount on its $229.4 million six-year term loan B to 96 from 97 and split the previously all U.S. tranche into a $25 million euro-equivalent piece and a $204.4 million U.S. piece, according to a market source.

Pricing on the U.S tranche is Libor plus 575 basis points, and pricing on the euro tranche is Euribor plus 575 bps.

The entire term loan B carries a 2% Libor floor and 101 soft call protection for one year.

Amortization on the B loan is 3% per year, with the balance due at maturity.

The company's $324.4 million senior secured credit facility (B2/B+) also includes a $75 million six-year euro equivalent term loan A and a $20 million six-year revolver, which are both priced at Libor plus 450 bps.

Allocations are hoped to go out towards the end of this week.

RBC and HSBC are the lead banks on the deal, with RBC the left lead. These banks opted to hold on to the revolver and term loan A and only really syndicate the term loan B.

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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