Sophos to launch $1.56 billion credit facilities in Jan. 6 week

By Sara Rosenberg

New York, Dec. 17 – Sophos is scheduled to hold a bank meeting at 1 p.m. ET in New York on Jan. 7 and a bank meeting in London on Jan. 8 to launch its $1,555,000,000 of first-lien credit facilities, according to a market source.

The facilities consist of a $125 million revolver and a $1.43 billion equivalent U.S. and euro first-lien term loan B, the source said.

The company is also getting a $520 million privately placed second-lien term loan.

Goldman Sachs Bank USA, BofA Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are the leads on the senior secured deal.

Based on the commitment letter, 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.

Proceeds will be used to help fund the buyout of the company by Thoma Bravo 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.