WatchGuard Technologies to launch $550 million term loan on Thursday

By Sara Rosenberg

New York, Aug. 3 – WatchGuard Technologies Inc. is scheduled to hold a lender call at 11 a.m. ET on Thursday to launch a $550 million seven-year first-lien term loan, according to a market source.

Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities Inc. are the bookrunners on the deal.

The first-lien term loan is talked at SOFR plus 525 basis points with a 0.5% floor and an original issue discount of 92 to 93, the source said.

Included in the first-lien term loan is 101 soft call protection for one year and amortization of 1% per annum.

Commitments are due on Aug. 15, the source added.

The company is also getting a $200 million privately placed second-lien term loan.

Proceeds will be used to support the acquisition of a majority stake in the company by Vector Capital.

WatchGuard Technologies is a Seattle-based provider of network security, endpoint security, secure Wi-Fi, multi-factor authentication and network intelligence.

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