F5 Networks enters into $400 million three-year term loan facility

By Sarah Lizee

Olympia, Wash., Jan. 24 – F5 Networks, Inc. entered into a term loan agreement on Friday with JPMorgan Chase Bank, NA as administrative agent, providing for a $400 million unsecured term loan due Jan. 24, 2023, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan and BofA Securities, Inc. are the joint lead arrangers and BofA is the syndication agent.

The proceeds were used to finance in part the company’s acquisition of Shape Security.

Borrowings bear interest at Libor plus 112.5 basis points to 175 bps, based on leverage. At closing the margin over Libor was 112.5 bps.

The term loan will amortize in equal quarterly installments starting with the first full fiscal quarter ended after Jan. 24 in total annual amounts equal to 5% of the original principal amount of the term loan facility.

A financial covenant requires F5 to meet a quarterly leverage ratio.

FS specializes in application services and application delivery networking. It is based in Seattle. Shape Security is an online fraud and abuse prevention company based in Santa Clara, Calif.

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