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Carbonite cuts spread on $550 million term B to Libor plus 375 bps
By Sara Rosenberg
New York, March 21 – Carbonite Inc. lowered pricing on its $550 million seven-year term loan B to Libor plus 375 basis points from talk in the range of Libor plus 400 bps to 425 bps, according to a market source.
Additionally, the original issue discount on the term loan was revised to 99 from 98.5, the source said.
Also, the MFN was changed to 50 bps for life from 50 bps MFN for 12 months. The MFN applies to all pari debt including incremental equivalent.
Furthermore, the dividend restricted payment basket was modified to $30 million from $60 million, and the ratio baskets were revised to up to 4 times secured net leverage and up to 6 times total net leverage, from up to 4.25 times secured net leverage and up to 6.5 times total net leverage, the source continued.
The term loan still has a 0% Libor floor and 101 soft call protection for six months.
The company’s up to $725 million of senior secured 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 deal.
Final commitments were scheduled to be due at 5 p.m. ET on Thursday.
Allocations are targeted for Friday, 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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