Sophos narrows pricing on $380M add-on TLB

A Goldman Sachs-led arranger group has tightened the original issue discount to 99.50, from 99, on a $380 million fungible add-on to Sophos Ltd.'s covenant-lite first-lien term loan due March 2027 (L+350, 0% Libor floor), sources said, noting that commitments are due by 10:30 a.m. ET today and that the deal is expected to price and allocate thereafter.

The 101 soft call protection on the facility will be reset for six months.

With the OID tightened, the loan would now yield roughly 3.86% to maturity, versus 3.94% at talk.

Additional arrangers include BofA Securities, Barclays, Credit Suisse and HSBC.

Proceeds will be used to refinance the company's existing second-lien term loan due 2028.

The first-lien term loan was originally placed in January 2020 to back the buyout of the company by Thoma Bravo and totaled $1.197 billion when it was placed. Financing also included a €300 million euro-denominated term loan B due January 2027 (E+350, 0% floor), a $125 million revolver and a $420 million privately placed second-lien term loan.

Abingdon, U.K.-based Sophos is a provider of network and endpoint security services. Corporate ratings are currently B-/B3/B-, with a stable outlook from S&P Global Ratings, Moody's and Fitch.