VeriFone gets lenders' consent to reprice term B after completion of IPO

By Sara Rosenberg

New York, March 24 - VeriFone Inc. received the OK from lenders this week to reprice its approximately $190 million term loan B to Libor plus 200 basis points from Libor plus 250 basis points following the successful completion of its proposed initial public offering of common stock, according to a market source.

Furthermore, the term loan B will have the ability to step down to Libor plus 175 basis points upon a rating upgrade from any one of the rating agencies.

There is no call protection contained in the repricing amendment.

"It went out about a week and a half ago," the source said about the repricing proposal. "All lenders rolled. I didn't hear of anyone dropping out."

A portion of the proceeds from the IPO will be used to repay the company's $72 million second-lien term loan.

The existing $30 million revolving credit facility will stay in place, the source added.

Bank of America and Credit Suisse First Boston are joint lead arrangers and joint bookrunners on the deal, with Bank of America the left lead.

VeriFone is a Santa Clara, Calif., supplier of electronic payment equipment owned by GTCR Golder Rauner.

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