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Avast Software to launch $1.6 billion-equivalent term loan next week
By Sara Rosenberg
New York, July 14 – Avast Software scheduled a bank meeting for 12:30 p.m. ET in New York on Tuesday and a bank meeting for 12:30 p.m. GMT in London on Monday to launch its proposed $1.6 billion-equivalent six-year U.S. dollar and euro term loan, according to a market source.
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.
Price talk on the term loan debt is Libor/Euribor plus 450 basis points with a 1% floor and an original issue discount of 99, the source said.
Also, the term loan debt has 101 soft call protection for six months and amortization of 5% per annum.
The company’s $1,685,000,000-equivalent credit facility provides for an $85 million revolver as well.
Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and UBS Investment Bank are the leads on the financing.
Commitments are due on Aug. 2, the source added.
Proceeds will be used to help fund the acquisition of AVG Technologies NV for $25 per share in cash, for a total consideration of about $1.3 billion, and to refinance existing debt at both companies.
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.
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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