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Optiv sets $230 million second-lien term loan at Libor plus 725 bps
By Sara Rosenberg
New York, Jan. 19 – Optiv Security Inc. firmed pricing on its $230 million eight-year covenant-light second-lien term loan at Libor plus 725 basis points, the low end of revised talk of Libor plus 725 bps to 750 bps and down from initial talk of Libor plus 850 bps, according to a market source.
The second-lien term loan still has a 1% Libor floor, an original issue discount of 99.5 and 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 and an $800 million seven-year covenant-light first-lien term loan.
Pricing on the first-lien term loan is Libor plus 325 bps with a 1% Libor floor and an original issue discount of 99.75.
The first-lien term loan has 101 soft call protection for six months.
Earlier in syndication, the second-lien term loan was downsized from $280 million and the discount was tightened from 98.5. Also, the first-lien term loan was upsized from $750 million, pricing was cut from talk of Libor plus 400 bps to 425 bps and the discount was changed from 99.
Jefferies Finance LLC, Macquarie Capital (USA) Inc. and KKR Capital Markets are the leads on the deal.
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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