VeriFone reworks tranche sizes, flexes term B to Libor plus 275 bps

By Sara Rosenberg

New York, June 30 – VeriFone Inc. upsized its five-year revolver to $500 million from $400 million and its five-year term loan A to $600 million from $550 million, and downsized its seven-year covenant-light term loan B to $200 million from $250 million, according to sources.

Also, pricing on the term loan B was reduced to Libor plus 275 basis points from talk of Libor plus 300 bps to 325 bps and the 101 soft call protection was extended to one year from six months, sources said.

The term loan B still has a 0.75% Libor floor and an original issue discount of 99½.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, RBC Capital Markets, Wells Fargo Securities LLC and Barclays are the lead banks on the now $1.3 billion credit facility (Ba3/BB), up from $1.2 billion.

Proceeds will be used to refinance existing debt.

VeriFone is a San Jose, Calif.-based company that makes secure electronic payment equipment.

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