McAfee lifts euro loan to €350 million, firms U.S. loan OID at 99.25

By Sara Rosenberg

New York, June 7 – McAfee LLC upsized its euro incremental first-lien term loan due September 2024 to €350 million (roughly $400 million equivalent) from $300 million equivalent, according to a market source.

Also, the original issue discount on the company’s $300 million incremental first-lien term loan due September 2024 finalized at 99.25, the tight end of the 99 to 99.25 talk, the source said.

Pricing on the euro incremental term loan remained at Euribor plus 350 basis points with a 0% floor, which matches existing euro term loan pricing, and the new debt was sold in line with talk at an original issue discount of 99.5.

The U.S. incremental term loan is priced at Libor plus 375 bps with a 0% Libor floor, same as the existing U.S. term loan.

The term loans have 101 soft call protection for six months.

Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Mizuho Bank, Morgan Stanley Senior Funding Inc., RBC Capital Markets and UBS Investment Bank are the leads on the deal.

Proceeds will be used to return capital to shareholders and for general corporate purposes.

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

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