Symantec gets $2.8 billion term loan commitment for Blue Coat purchase

By Wendy Van Sickle

Columbus, Ohio, June 14 – Symantec Corp. entered into a $2.8 billion term loan commitment letter with seven lenders in connection with its entry Sunday into a merger agreement to acquire of all of the outstanding capital stock of Blue Coat, Inc., according to an 8-K filing with the Securities and Exchange Commission.

The commitment parties include JPMorgan Chase Bank, NA, Bank of America, NA, Bank of America Merrill Lynch, Barclays Bank plc, Citigroup Global Market Inc., Wells Fargo Bank, NA and Wells Fargo Securities, LLC.

The parties committed to provide the funding in three tranches, including a $1.8 billion five-year term loan, an $800 million three-year term loan and a $200 million three-year term loan.

Some of the commitment parties that are existing lenders of the company have agreed to consent to amend Symantec’s existing credit agreement dated May 10 to, among other things, modify certain financial covenants and permit the new term loans. The amendments would become operative upon the closing of the acquisition, according to the filing.

If the credit facility amendments are not approved, the commitment parties committed to provide a $2 billion replacement credit facility.

The merger agreement, which calls for Symantec to purchase Blue Coat for about $4.65 billion, will terminate if the transaction is not consummated by Dec. 12, 2016.

Symantec is a Mountain View, Calif.-based provider of security, storage and systems management solutions.

Blue Coat is a Sunnyvale, Calif.-based web security company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.