McAfee discloses price talk on $4.75 billion credit facilities

By Sara Rosenberg

New York, Sept. 7 – McAfee LLC came out with price talk on its $4.75 billion of senior secured credit facilities with its lenders’ presentation on Thursday, according to a market source.

The $500 million five-year revolver (B1/B) is talked at Libor plus 375 basis points to 400 bps with a 0% Libor floor, the $3.5 billion seven-year covenant-light first-lien term loan B (B1/B) is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 99 to 99.5, and the $750 million eight-year covenant-light second-lien term loan (Caa1/B-) is talked at Libor plus 775 bps to 800 bps with a 1% Libor floor and a discount of 98.5, the source said.

Included in the first-lien term loan is 101 soft call protection for six months and amortization of 1% per annum, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC, UBS Investment Bank and Mizuho Bank Ltd. are the joint lead arrangers and bookrunners on the deal, with Morgan Stanley the left lead on the first-lien and JPMorgan the left lead on the second-lien.

Commitments are due on Sept. 21, the source added.

Proceeds will be used to refinance the existing Intel seller financing, pay a dividend to equity holders and pay fees and expenses.

McAfee is a Santa Clara, Calif.-based cybersecurity company.

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