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McAfee trims U.S. term B to $3.05 billion, adds €375 million term B
By Sara Rosenberg
New York, Sept. 13 – McAfee LLC downsized its U.S. seven-year covenant-light first-lien term loan B (B1/B) to $3.05 billion from $3.5 billion and added a €375 million ($450 million equivalent) seven-year covenant-light first-lien term loan B to the capital structure, according to a market source.
Price talk on the euro first-lien term loan B is Euribor plus 375 basis points to 400 bps with a 0% floor and an original issue discount of 99.5, the source said.
The company’s $4.75 billion of senior secured credit facilities still include a $500 million five-year revolver (B1/B) and a $750 million eight-year covenant-light second-lien term loan (Caa1/B-).
As before, talk on the U.S. first-lien term loan B is Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 99 to 99.5, talk on the revolver is Libor plus 375 bps to 400 bps with a 0% Libor floor and talk on the second-lien term loan is Libor plus 775 bps to 800 bps with a 1% Libor floor and a discount of 98.5.
Included in the first-lien term loan debt is 101 soft call protection for six months and amortization of 1% per annum, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.
Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC, UBS Investment Bank and Mizuho Bank Ltd. are the joint lead arrangers and bookrunners on the deal, with Morgan Stanley the left lead on the first-lien and JPMorgan the left lead on the second-lien.
Commitments are due on Sept. 21.
Proceeds will be used to refinance the existing Intel seller financing, pay a dividend to equity holders and pay fees and expenses.
McAfee is a Santa Clara, Calif.-based cybersecurity company.
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