Forcepoint lifts term loan to $575 million, reduces pricing

By Sara Rosenberg

New York, Feb. 1 – Forcepoint upsized its seven-year covenant-lite first-lien term loan to $575 million from $525 million and reduced pricing to Libor plus 450 basis points from talk in the range of Libor plus 475 bps to 500 bps, according to a market source.

Also, a 25 bps pricing step-down was added at 4x first-lien gross leverage and the original issue discount was tightened to 99.25 from 98.5, the source said.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

The company’s now $650 million of credit facilities (B3/B-/B+), up from $600 million, also include a $75 million revolver.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, Deutsche Bank Securities Inc. and Nomura are the lead arrangers on the deal.

Recommitments were scheduled to be due at noon ET on Monday, the source added.

Proceeds will be used to support the buyout of the company by Francisco Partners from Raytheon Technologies, which was completed in January.

The equity for the transaction was reduced by $50 million as a result of the term loan upsizing.

Forcepoint is an Austin, Tex.-based provider of cybersecurity solutions.

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