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Optiv Security shifts funds between term loans, reworks pricing
By Sara Rosenberg
New York, Jan. 13 – Optiv Security Inc. upsized its seven-year covenant-light first-lien term loan to $800 million from $750 million and downsized its eight-year covenant-light second-lien term loan to $230 million from $280 million, according to a market source.
Also, pricing on the first-lien term loan was reduced to Libor plus 325 basis points from talk of Libor plus 400 bps to 425 bps, and guidance on the second-lien term loan was lowered to a range of Libor plus 725 bps to 750 bps from talk at launch of Libor plus 850 bps, the source said.
Furthermore, the original issue discount on the first-lien term loan was tightened to 99.75 from 99 and the discount on the second-lien term loan was revised to 99.5 from 98.5, the source continued.
Both term loans still have a 1% Libor floor, the first-lien term loan still has 101 soft call protection for six months, and the second-lien term loan still has hard call protection of 102 in year one and 101 in year two.
The company’s $1.13 billion credit facility also includes a $100 million five-year ABL revolver.
Jefferies Finance LLC, Macquarie Capital (USA) Inc. and KKR Capital Markets are the leads on the deal.
Commitments were scheduled to be due at 3 p.m. ET on Friday, 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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