Varsity Brands upsizes first-lien add-on term loan to $115 million

By Paul A. Harris

Portland, Ore., Oct. 24 – Varsity Brands upsized its add-on first-lien term loan to $115 million from $95 million, according to a market source.

Talk remains Libor plus 400 basis points at 99.5.

There is a 1% Libor floor.

Commitments were due at 5 p.m. ET on Monday.

The deal comes with six months of soft call protection at 101 and features 1% annual amortization.

Goldman Sachs is the left bookrunner. Barclays and Jefferies are the joint bookrunners.

With the downsizing of the first-lien tranche, the company’s second lien loan, which is being privately placed, is downsized to $75 million from $95 million.

The Memphis-based provider of school sports, cheerleading and achievement-related products plans to use the proceeds, along with balance sheet cash, to fund a distribution to existing equity holders.

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