WatchGuard changes $550 million term loan OID talk to 93-93.5

By Sara Rosenberg

New York, Aug. 16 – WatchGuard Technologies Inc. revised the original issue discount talk on its $550 million seven-year first-lien term loan (B2/B-) to a range of 93 to 93.5 from a range of 92 to 93, according to a market source.

In addition, the company made some changes to documentation, the source said.

Pricing on the first-lien term loan remained at SOFR plus 525 basis points with a 0.75% floor.

The first-lien term loan still has 101 soft call protection for one year and amortization of 1% per annum.

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

Recommitments were scheduled to be due at 5:30 p.m. ET on Tuesday, the source added.

Allocations are expected on Wednesday morning.

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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