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Optiv Security launches $1.13 billion credit facility to investors
By Sara Rosenberg
New York, Jan. 5 – Optiv Security Inc. held its bank meeting on Thursday to launch its credit facility that was revealed to be sized at $1.13 billion, according to a market source.
The deal is split between a $100 million five-year ABL revolver, a $750 million seven-year covenant-light first-lien term loan and a $280 million eight-year covenant-light second-lien term loan, the source said.
Previously, it was known that the facility would include an ABL revolver, a covenant-light first-lien term loan and a covenant-light second-lien term loan, but tranche sizes were not available.
Price talk on the first-lien term loan is Libor plus 400 basis points to 425 bps with a 1% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 850 bps with a 1% Libor floor and a discount of 98.5, the source continued.
The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.
Jefferies Finance LLC, Macquarie Capital (USA) Inc. and KKR Capital Markets are the leads on the deal.
Commitments are due on Jan. 19, the source added.
Proceeds will be used to help fund the buyout of the company by KKR from a group of private investors, including a private equity fund managed by Blackstone, which will maintain a minority interest in Optiv along with Optiv management. Other selling shareholders include Investcorp and Sverica.
Closing is expected this quarter, subject to customary conditions.
Optiv Security is a Denver-based provider of end-to-end cyber security solutions.
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