Sophos sets talk on $1.43 billion equivalent first-lien term loan

By Sara Rosenberg

New York, Jan. 7 – Sophos released price talk on its $1.43 billion equivalent U.S. and euro seven-year covenant-lite first-lien term loan (B2/B-/B) in connection with its New York bank meeting on Tuesday, according to a market source.

The U.S. first-lien term loan tranche and the €300 million euro first-lien term loan tranche are talked at Libor/Euribor plus 400 basis points to 425 bps with a 25 bps step-down at 0.5x turn inside closing date first-lien net leverage, a 0% floor and an original issue discount of 99, the source said.

All of the first-lien term loan debt has 101 soft call protection for six months.

A bank meeting for European investors will take place in London on Wednesday.

Commitments are due on Jan. 22, the source added.

The company’s $2,075,000,000 of senior secured credit facilities also include a $125 million five-year revolver (B2/B-/B) and a $520 million privately placed eight-year covenant-lite second-lien term loan.

Goldman Sachs Bank USA, BofA Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by Thoma Bravo for $7.40 per share, representing an enterprise value of about $3.9 billion.

Sophos is an Oxford, U.K.-based provider of next-generation cybersecurity.

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