Sophos sets lender call for noon to launch $380M add-on term loan

A Goldman Sachs-led arranger group has scheduled a lender call for noon ET today to launch a $380 million fungible add-on term loan B for Sophos Ltd., according to sources.

Price talk for the add-on term loan is not yet available, but it will be fungible with the issuer's existing covenant-lite first-lien term loan due January 2027 that is priced at L+350, with a 0% Libor floor. Additional arrangers include BofA Securities, Barclays, Credit Suisse and HSBC.

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.

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

Oxford, 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.