Carbonite launches $550 million term loan B at Libor plus 400-425 bps

By Sara Rosenberg

New York, March 7 – Carbonite Inc. launched on Thursday its $550 million seven-year term loan B with price talk of Libor plus 400 basis points to 425 bps with a 0% Libor floor and an original issue discount of 98.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s up to $725 million of credit facilities (B1/B) also include an up to $175 million five-year revolver.

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

Commitments are due at 5 p.m. ET on March 21, the source added.

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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