McAfee plans lender call for Monday morning to launch loan deal

By Sara Rosenberg

New York, Jan. 21 – McAfee Corp. is scheduled to hold a lender call at 11 a.m. ET on Monday to launch a new loan transaction, according to a market source.

In November, the company revealed that it has a commitment for $7.66 billion of credit facilities and a $2.32 billion senior unsecured bridge facility to help fund its acquisition by an investor group led by Advent International Corp., Permira Advisers LLC, Crosspoint Capital Partners, Canada Pension Plan Investment Board, GIC Private Ltd. and Abu Dhabi Investment Authority.

JPMorgan Chase Bank, BofA Securities Inc., Credit Suisse, Barclays, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., RBC Capital Markets, CPPIB Credit Investments III Inc., UBS Securities LLC and PSP Investments Credit II USA LLC provided the debt commitment.

As committed, the credit facilities consist of a $1 billion first-lien cash flow revolver and a $6.66 billion first-lien term loan.

The bridge facility may be replaced with senior notes.

Other funds for the buyout are expected to come from $5.2 billion of equity, and PSP Investments Credit USA LLC and investment funds managed by Neuberger Berman have agreed to provide the investor group with preferred equity financing with an aggregate liquidation preference of up to $800 million, subject to customary conditions.

Under the agreement, McAfee is being bought for $26.00 per share in an all-cash transaction valued at about $12 billion on an equity value basis, and over $14 billion on an enterprise value basis after giving effect to repayment of McAfee debt.

Closing is expected in the first half of this year, subject to customary conditions, including approval by McAfee shareholders, receipt of regulatory approvals, and clearance by the Committee on Foreign Investment in the U.S.

McAfee is a San Jose, Calif.-based provider of online protection for consumers.

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