Symantec gets $200 million loan due 2019, $1.8 billion loan due 2021

By Angela McDaniels

Tacoma, Wash., Aug. 1 – Symantec Corp. borrowed a $200 million three-year term loan A-3 and a $1.8 billion five-year term loan A-5 on Monday, according to an 8-K filing with the Securities and Exchange Commission.

The interest rate is Libor plus a margin based on the company’s debt ratings.

The company may prepay the loans at any time without penalty.

The term loan agreement contains a covenant that the company maintain a ratio of consolidated funded debt to consolidated EBITDA of less than 5.5 to 1, decreasing to 4.75 to 1 two years after the closing date.

The term loans are guaranteed by some of the company’s U.S. subsidiaries. At the company’s option, the loans may be assumed by a foreign subsidiary, in which case it would have to guarantee the successor borrower’s obligations.

Proceeds were used to, among other things, fund the $3.01 billion cash consideration for the acquisition of Blue Coat, Inc.

Symantec is a Mountain View, Calif.-based provider of security, storage and systems management solutions. Blue Coat is a Sunnyvale, Calif.-based web security company.

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