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Barracuda Networks updates first- and second-lien term loan pricing
By Sara Rosenberg
New York, Oct. 22 – Barracuda Networks finalized pricing on its fungible $206 million add-on first-lien term loan B (B2/B-) due February 2025 at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and reduced pricing on its $365 million second-lien term loan (Caa2/CCC+) due 2028 to Libor plus 675 bps from talk in the range of Libor plus 750 bps to 775 bps, according to a market source.
Also, the original issue discount on the second-lien term loan was revised to 99 from 98.5, the source said.
As before, the add-on first-lien term loan has a 0.75% Libor floor, an original issue discount of 99, 101 soft call protection for six months and amortization of 1% per annum, and the second-lien term loan has a 0.75% Libor floor and hard call protection of 102 in year one and 101 in year two.
With this transaction, pricing on the company’s existing $744 million first-lien term loan B due February 2025 will be revised from the current rate of Libor plus 325 bps with a 1% Libor floor to match the add-on term loan spread and floor. The existing term loan B is offered at par and will get 101 soft call protection for six months as well.
Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS Investment Bank and Stone Point are the leads on the deal.
Recommitments for the second-lien term loan were scheduled to be due at noon ET on Thursday, the source added.
Proceeds will be used to fund a dividend to existing shareholders and add cash to the balance sheet for potential future acquisitions.
Barracuda Networks is a Campbell, Calif.-based provider of security and data protection solutions.
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