Varsity Brands flexes $1.13 billion term loan to Libor plus 350 bps

By Sara Rosenberg

New York, Dec. 7 – Varsity Brands Inc. reduced pricing on its $1,125,000,000 seven-year first-lien term loan (B1/B) to Libor plus 350 basis points from talk in the range of Libor plus 375 bps to 400 bps, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Jefferies LLC, Barclays and Cowen are the arrangers on the deal. Jefferies is the administrative agent.

Recommitments were scheduled to be due at noon ET on Thursday, the source said.

The company is also getting a $500 million eight-year second-lien term loan that has been privately placed.

The second-lien term loan has call protection of 102 in year one and 101 in year two.

Proceeds will be used to repay existing debt.

Varsity Brands is a Memphis, Tenn.-based provider of sports, cheerleading and achievement-related products to schools.

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