Vesta withdraws revised $200 million first-lien term loan from market

By Sara Rosenberg

New York, Nov. 30 - Vesta Corp. removed its $200 million five-year first-lien term loan from the primary market, according to a market source.

The decision to pull the loan was made by management, even though the transaction had cleared in line with revised terms, the source said.

The loan was being talked at Libor plus 700 basis points with a 1.25% Libor floor and an original issue discount of 98.

The loan had soft call protection of 103 in year one, 102 in year two and 101 in year three. It also had amortization of 10% per annum, an excess cash flow sweep of 50% with no step-downs and maximum leverage and interest coverage ratios.

Earlier in the attempted syndication process, pricing on the first-lien loan was increased from Libor plus 500 bps, the discount was revised from 99, the soft call protection was sweetened from just 101 for one year and a $95 million six-year second-lien term loan was removed from the capital structure.

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

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

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

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