AVG gets commitments for up to $300 million term loan, revolver

By Marisa Wong

Madison, Wis., Sept. 3 – AVG Technologies NV said it entered into a commitment letter with Morgan Stanley Senior Funding, Inc., HSBC Securities (USA) Inc., HSBC Bank plc and HSBC Bank USA, NA for up to $300 million of senior secured credit facilities.

The facilities will consist of a term loan B of up to $250 million and a revolving credit facility of up to $50 million, according to a press release.

The term loan has a tenor of six years, and the revolver has a tenor of five years.

The facilities will primarily be used for AVG’s acquisition of mobile security company Location Labs, as well as other general corporate purposes, including future potential acquisitions.

AVG will pay about $140 million initially, plus up to roughly $80 million in cash consideration over the next two years, to acquire Location Labs. The transaction is expected to close during the fourth quarter.

AVG is an online security company with headquarters in Amsterdam and San Francisco. Location Labs is based in Emeryville, Calif.

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