NortonLifeLock closes $2.25 billion of five-year credit facilities

By Sarah Lizee

Olympia, Wash., Nov. 4 – NortonLifeLock Inc., formerly known as Symantec Corp., entered into a credit agreement on Monday that provides for a $500 million five-year term loan facility, a $750 million five-year delayed-draw term loan facility and a $1 billion five-year revolver, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA, Wells Fargo Securities, LLC, BofA Securities, Inc., Mizuho Bank, Ltd., Barclays Bank plc and Bank of Nova Scotia are lead arrangers and joint bookrunners, with JPMogran as administrative agent for term loans and Wells Fargo as administrative agent for revolving loans. Bank of America, NA, Mizuho Bank, Barclays and Scotiabank are syndication agents. Goldman Sachs Bank USA, Fifth Third Bank, HSBC Securities (USA) Inc., MUFG Bank, Ltd., SunTrust Robinson Humphrey, Inc., Citizens Bank, NA, BMO Capital Markets Corp., BNP Paribas Securities Corp. and Santander Bank, NA are do-documentation agents.

The delayed-draw loan is available until Sept. 15, 2020.

The credit agreement replaces the prior credit facility that was terminated on Monday.

At closing, the company did not borrow any funds under the revolver but borrowed $500 million under the initial term facility to refinance debt under the prior credit facility.

The proceeds of borrowings under the delayed-draw term facility will be used by the company to refinance its 4.2% senior notes due 2020.

The revolver may be used for working capital, general corporate purposes and other purposes.

There is an up to $500 million accordion.

Interest is Libor plus 112.5 basis points to 175 bps, and the commitment fee is 12.5 bps to 30 bps, depending on debt ratings. At closing, interest was Libor plus 150 bps and the fee was 25 bps.

There is a covenant that the company must maintain a ratio of debt to adjusted EBITDA of not more than 5.25x, subject to adjustment in connection with material acquisitions.

Tempe, Ariz.-based NortonLifeLock is a cyber security company. It sold its Enterprise Security Assets to Broadcom for $10.7 billion and transferred the Symantec brand to Broadcom. The company’s name was changed to NortonLifeLock following the sale.

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