Accuvant ups talk on first-lien term loan to Libor plus 500-525 bps

By Sara Rosenberg

New York, Dec. 11 – Accuvant lifted price talk on its $300 million seven-year first-lien covenant-light term loan (B1/B) to Libor plus 500 basis points to 525 bps from Libor plus 450 bps to 475 bps, according to a market source.

Also, the original issue discount on the first-lien term loan widened to 98˝ from 99 and the 101 soft call protection was extended to one year from six months, the source said.

The first-lien term loan still has a 1% Libor floor.

Meanwhile, talk on the company’s $125 million eight-year second-lien covenant-light term loan (Caa1/CCC+) remained at Libor plus 875 bps to 900 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

Commitments for the $425 million of term loans continue to be due on Friday, the source added.

Goldman Sachs Bank USA and Societe Generale are the leads on the deal.

Proceeds will be used to help fund the merger of Denver-based Accuvant and Overland Park, Kan.-based FishNet Security, two providers of information security services and solutions.

Blackstone private equity funds will maintain majority ownership in the combined company, and current investors of both organizations, including existing management, the private equity firm Sverica International and FishNet Security’s corporate owner, Investcorp, are maintaining minority equity interests.

Closing is expected in the first quarter of 2015, subject to regulatory approvals.

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