Websense to launch $80 million add-on first-lien term loan on Thursday

By Sara Rosenberg

New York, March 26 - Websense Inc. set a call for 2 p.m. ET on Thursday to launch a fungible $80 million add-on first-lien term loan due June 2020, according to a market source.

RBC Capital Markets is the lead bank on the deal.

Pricing on the first-lien term loan is Libor plus 350 basis points with a 1% Libor floor, the source said.

Proceeds will be used to repay a shareholder loan.

In connection with the add-on, the company is seeking an amendment to its existing credit facility to allow for the new debt, provide for 101 soft call protection for six months to all of the first-lien term loan debt and reset the second-lien term loan call protection at 102 in year one and 101 in year two from closing of the amendment.

First-lien lenders are being offered a 12.5 bps amendment fee and second-lien lenders are being offered a 25 bps amendment fee, the source continued.

Also as part of the amendment, RBC will become the administrative agent on the first-lien term loan, a role currently held by J.P. Morgan Securities LLC. RBC is already the agent on the second-lien loan.

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

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