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Avast ups term loan to about $1.64 billion-equivalent, updates pricing
By Sara Rosenberg
New York, Aug. 1 – Avast Software lifted its six-year U.S. dollar and euro term loan to about $1.64 billion-equivalent from $1.6 billion-equivalent and set the tranche sizes at $1.2 billion and €400 million, according to a market source.
Initially, the breakdown of the U.S. and euro term loan tranche sizes was not available, but it was said that at least 50% of the total amount would be in dollars.
Also, pricing on the U.S. term loan was reduced to Libor plus 400 basis points with a step-down from Libor plus 450 bps, and pricing on the euro term loan was trimmed to Euribor plus 375 bps with a step-down from Euribor plus 450 bps, the source said.
In addition, the original issue discount on the term loan debt was tightened to 99.5 from 99.
As before, the term loan debt has a 1% floor, 101 soft call protection for six months and amortization of 5% per annum.
The company’s credit facility provides for an $85 million revolver as well.
Commitments are due at noon ET on Tuesday.
Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and UBS Investment Bank are the leads on the financing.
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 equity.
The extra cash raised through the term loan upsizing will be put on the balance sheet for liquidity, the source added.
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.
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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