DigiCert, the Internet security company, rolled out US$1.5 Billion in second and first-lien term loans supporting the acquisition of the company for web certification business of Symantec.
UBS tops the agreement with bookrunners such as Jefferies, Credit Suisse, Goldman Sachs, and Macquarie. The term loans include of a US$900 Million term loan B-2, a US$300 Million term loan B-1, and a US$300 Million second-lien term loan. A US$90 Million revolver adds to the transaction as well. The TLB-1, which concludes on December 31, 2020, is led at 400bp over Libor with a 99.5 OID and a 1% Libor floor.
The 7-year TLB-2 is led at 500bp over Libor with discount of 99 and a 1% Libor floor. Cost guidance on the second-lien 8-year term loan is kept at 850bp over Libor with 99 discount and a 1% Libor floor. The TLB-2 and TLB-1 are anticipated to have 101 soft call defense for 6 Months, while the 2nd-lien portion might be callable at 102 in first year, then at 101 in second year.
Ratings of corporate family are B/BB-. Ratings of First-lien facility are B+/BB+ and ratings of second-lien facility are CCC+/BB-. Thoma Bravo-owned private equity firm DigiCert claimed last month that it will buy public key and website security infrastructure unit of Symantec, which confirms the genuineness of web browsers for secure websites. Caesars Entertainment Operating Co. has gathered US$2.2 Billion of funds from Barclays, JP Morgan, Morgan Stanley, and Goldman Sachs.
Proceeds will be utilized to pay down loan at the working company stage as Caesars establishes a real estate spending trust as fraction of the reorganization plan of the company, which is dividing the firm into a REIT and a casino operator. In January 2015, Caesars filed for bankruptcy.
The deal is divided amid a US$200 Million senior mezzanine debt, a US$1.55 Billion mortgage debt, a US$250 Million junior mezzanine debt, and a US$200 Million intermediate mezzanine debt. This data was provided by industry sources that are well aware of this topic and the transactions.
The proceeds will support the leasehold interests and fee in Caesars Palace at Las Vegas.