Sophos sets price talk for $380M add-on term loan; commits due Feb. 22

A Goldman Sachs-led arranger group is out with price talk on a $380 million fungible add-on term loan B for Sophos Ltd. following a lender call today, according to sources. Commitments are due by 5 p.m. ET on Feb. 22.

Price talk for the add-on is set at an original issue discount of 99 and is fungible with the issuer's existing covenant-lite first-lien term loan due March 2027 that is priced at L+350, with a 0% Libor floor. The 101 soft call protection on the facility will be reset for six months. At talk, yield to maturity is approximately 3.94%.

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.

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.