Websense sets first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, June 6 - Websense, Inc. released price talk on its $350 million seven-year covenant-light first-lien term loan (B+) and $225 million 71/2-year covenant-light second-lien term loan (CCC+) with its Thursday bank meeting, according to a market source.

The first-lien term loan is talked at Libor plus 350 basis points to 375 bps with a 1% Libor floor and an original issue discount of 991/2, and the second-lien term loan is talked at Libor plus 750 bps with a 1% Libor floor and a discount of 99, the source said.

The company's $615 million senior secured credit facility also includes a $40 million five-year revolver (B+).

J.P. Morgan Securities LLC, RBC Capital Markets and Guggenheim Partners are leading the financing.

Proceeds will be used to help fund the buyout of the company by Vista Equity Partners for $24.75 in cash per share.

Other funds for the transaction will come from $500 million of equity.

Closing is expected before the end of the third quarter, subject to a minimum stock tender condition, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, financing and other customary conditions.

Websense is a San Diego-based provider of web security, e-mail security, mobile security and data loss prevention.

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