Optiv trims term loan to $650 million, firms at SOFR plus 525 bps

By Sara Rosenberg

New York, April 18 – Optiv Parent Inc. downsized its first-lien term loan due August 2026 (B3/B-) to $650 million from $725 million and upsized its privately placed second-lien PIK toggle facility to $260 million from $185 million, according to a market source.

Also, pricing on the term loan finalized at SOFR plus 525 basis points, the high end of the SOFR plus 500 bps to 525 bps talk, the source said.

The term loan still has a 1% floor, an original issue discount of 96.5 and 101 soft call protection for six months.

Jefferies LLC, KKR Capital Markets, US Bank, Goldman Sachs Bank USA, SMBC and Mizuho are the bookrunners on the deal.

Recommitments were scheduled to be due at 4 p.m. ET on Tuesday, the source added.

Proceeds from the term loan and second-lien PIK toggle facility will be used to refinance the company’s existing debt and fund the acquisition of ClearShark LLC, a Maryland-based adviser and top value-added reseller of cybersecurity and modernization technology to the U.S. federal government.

Optiv is a Denver-based pureplay cyber security solutions provider.

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