Sophos eyes $2.08 billion credit facilities for buyout by Thoma Bravo

By Sara Rosenberg

New York, Oct. 16 – Sophos has received a commitment for $2,075,000,000 of senior secured credit facilities to help fund its recently announced acquisition by Thoma Bravo, according to a the commitment letter.

Goldman Sachs Bank USA is the left lead arranger and bookrunner on the deal.

The facilities consist of a $125 million five-year multi-currency revolver, a $1.43 billion seven-year covenant-lite first-lien term loan and a $520 million eight-year covenant-lite second-lien term loan.

As committed, initial pricing on the revolver and first-lien term loan is expected at Libor plus 425 basis points with a 0% Libor floor. The revolver is expected to have two 25 bps step-downs and the term loan is expected to have one 25 bps step-down, all based on first-lien net leverage.

Pricing on the second-lien term loan is expected at Libor plus 825 bps with a 0% Libor floor.

The first-lien term loan is anticipated to have 101 soft call protection for six months, and the second-lien term loan is anticipated to have call protection of 102 in year one and 101 in year two.

Under the agreement, Sophos is being bought for $7.40 per share, representing an enterprise value of about $3.9 billion.

Sophos is an Oxford, U.K.-based provider of next-generation cybersecurity.

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