Carbonite to launch $725 million credit facilities on Thursday

By Sara Rosenberg

New York, March 5 – Carbonite Inc. is scheduled to hold a bank meeting on Thursday to launch up to $725 million of credit facilities, according to a market source.

Barclays, Citizens Bank, RBC Capital Markets and HSBC Securities (USA) Inc. are the lead arrangers on the senior secured deal.

The facilities consist of an up to $175 million five-year revolver and a $550 million seven-year term loan B, the source said.

Proceeds will be used with cash on hand to fund the acquisition of Webroot Inc. for about $618.5 million.

Closing is expected this quarter, subject to the regulatory clearance and other customary conditions.

Pro forma net leverage will be around 4.3 times, including the benefit of identified cost synergies.

Carbonite is a Boston-based cloud-based data protection provider. Webroot is a Broomfield, Colo.-based cybersecurity company.

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