Banks line up $6.66B term loan, $2.32B bridge for acquisition of McAfee

J.P. Morgan, BofA Securities, Credit Suisse, Barclays, Citi, HSBC, RBC Capital Markets, CPPIB Credit Investments III Inc., UBS and PSP Investments Credit II USA LLC have agreed to provide a $6.66 billion first-lien term loan, a $1 billion revolver, and a $2.32 billion senior unsecured bridge facility in connection with the acquisition of McAfee Corp. by an investor group led by Advent International, Permira Advisors, Crosspoint Capital, CPP Investments, GIC and a wholly owned subsidiary of the Abu Dhabi Investment Authority, according to a statement. The transaction is expected to close in the first half of 2022.

PSP Investments Credit USA LLC and NB Andes LP have agreed to provide preferred equity financing of up to $800 million in connection with the transaction.

As part of the transaction, the investor group will acquire all outstanding shares of McAfee common stock for $26.00 per share in an all-cash transaction valued at approximately $12 billion on an equity value basis, and more than $14 billion on an enterprise value basis after giving effect to repayment of McAfee debt. The purchase price represents a premium of approximately 22.6% over McAfee’s closing share price of $21.21 on Nov. 4, the last trading day prior to media reports regarding a potential sale of McAfee.