Avast cuts spread on $420 million term loan to Libor plus 400 bps

By Sara Rosenberg

New York, March 17 - Avast reduced pricing on its $420 million six-year first-lien covenant-light term loan to Libor plus 400 basis points from Libor plus 425 bps, according to a market source.

Also, a step-down was added to the term loan to Libor plus 375 bps at 3 times first-lien leverage, and the original issue discount was tightened to 99½ from 99, the source said.

As before, the term loan has a 1% Libor floor, 101 soft call protection for one year and amortization of 5% per annum.

The company's $460 million credit facility (B1/B+) also includes a $40 million five-year revolver.

Recommitments were due at 5 p.m. ET on Monday, the source added.

Credit Suisse Securities (USA) LLC, UBS Securities LLC and Jefferies Finance LLC are the lead banks on the deal.

Proceeds will be used to help fund a major investment in the company by CVC Capital Partners.

The investment values the company at $1 billion.

Closing is expected this month.

Avast is a Czech Republic-based provider of security software for PCs, smartphones and tablets.

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