Avast Software plans $1.69 billion credit facility for AVG purchase

By Sara Rosenberg

New York, July 7 – Avast Software expects to get a $1,685,000,000-equivalent credit facility to help fund its acquisition of AVG Technologies NV, according to a market source.

Credit Suisse Securities, Jefferies and UBS Investment Bank are the leads on the financing.

The facility consists of an $85 million revolver and a $1.6 billion-equivalent dollar and euro term loan, the source said.

The breakdown of the U.S. and euro term loan tranche sizes are not yet available, but at least 50% of the $1.6 billion total amount is expected to be in dollars, the source continued.

Under the agreement, AVG is being bought for $25 per share in cash, for a total consideration of about $1.3 billion.

Other funds for the transaction will come from cash on hand and $150 million in equity.

Closing is expected sometime between Sept. 15 and Oct. 15, subject to regulatory approvals, certain shareholder approvals, the tender of a specified amount of AVG’s shares and other customary conditions. The transaction is not subject to financing.

Leverage is in the “mid-3 handle,” the source added.

Avast is a Prague-based maker of security software. AVG is a Netherlands-based provider of software services to secure devices, data and people.

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