Vesta to launch $295 million first- and second-lien term loans Tuesday

By Sara Rosenberg

New York, Nov. 5 - Vesta Corp. is scheduled to hold a bank meeting at 1 p.m. ET in New York on Tuesday to launch $295 million of new term loans, according to market sources.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The debt consists of a $200 million five-year first-lien term loan and a $95 million six-year second-lien term loan, sources said.

Price talk on the first-lien term loan is Libor plus 500 basis points with a 1.25% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 925 bps with a 1.25% Libor floor and a discount of 98, sources continued.

There is 101 repricing protection for one year on the first-lien loan and call protection of 103 in year one, 102 in year two and 101 in year three on the second-lien loan.

Covenants include maximum leverage and interest coverage ratios.

Proceeds will be used to fund a tender offer for existing shareholders.

Commitments will be due on Nov. 20, sources added.

Vesta is an Atlanta-based provider of non-retail electronic payment solutions for the telecommunications industry.

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