DigiCert finalizes pricing on 1st-lien, 2nd-lien term loan financing

A Credit Suisse-led arranger group has finalized pricing on DigiCert Inc.'s first-lien and second-lien term loan financing and commitments to the deal are due today by noon ET, according to sources.

Pricing for the $427 million fungible add-on to the issuer's first-lien term loan due October 2026 is L+400, with a 0% Libor floor and an issue price of par. At these terms, the yield to maturity is 4.26%. Lenders are offered six months of 101 soft call protection.

The $515 million, eight-year second-lien term loan is priced at L+700, with a 0% floor and an original issue discount of 99.75. That works out to a yield to maturity of 7.43%. There are hard calls at 102 and 101 in years one and two, respectively.

Proceeds from the deal will be used to fund a shareholder distribution and to refinance the existing second-lien loan.

First-lien facility ratings are B-/B2/BB-, with recovery ratings of 3 and 2 from S&P Global Ratings and Fitch. Second-lien ratings are CCC/Caa2/CCC+, with recovery ratings of 6 from both S&P Global Ratings and Fitch. Corporate ratings are B-/B3/B. The borrower is DCert Buyer Inc.

DigiCert, backed by Clearlake Capital Group and TA Associates, is a digital certificate provider that offers identity, authentication and encryption solutions for the web and the internet of things.