McAfee reworks U.S. and euro first-lien term loan sizes

By Sara Rosenberg

New York, Oct. 25 – McAfee LLC downsized its U.S. senior secured covenant-light term loan B (B1/B) due Sept. 29, 2024 to about $2,801,000,000 from $2,851,013,910 and upsized its euro senior secured covenant-light term loan B (B1/B) due Sept. 29, 2024 to about €741 million from €650,802,180, according to a market source.

In addition, pricing on the euro term loan was reduced to Euribor plus 350 basis points from Euribor plus 375 bps, the source said.

Pricing on the U.S. term loan remained at Libor plus 375 bps.

As before, both term loans have a 0% floor, a par issue price, 101 soft call protection for six months and amortization of 1% per annum.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC, UBS Investment Bank and Mizuho Bank are the joint lead arrangers and bookrunners on the deal. TPG is a co-manager.

Proceeds will be used to reprice existing U.S. and euro term loans, to repay $50 million of the U.S. first-lien term loan and to repay $50 million of the company’s second-lien term loan.

Closing is expected on Nov. 1, the source added.

McAfee is a Santa Clara, Calif.-based cybersecurity company.

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