Vestcom discloses first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, Sept. 9 – Vestcom came out with price talk on its $215 million seven-year first-lien covenant-light term loan B (B1/B) and $95 million eight-year second-lien term loan (Caa1/CCC+) with its bank meeting on Tuesday, according to a market source.

Price talk on the first-lien term loan is Libor plus 450 basis points with a 1% Libor floor and original issue discount of 99, and the second-lien term loan is talked at Libor plus 800 bps with a 1% Libor floor and a discount of 98˝, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $335 million credit facility also includes a $25 million five-year revolver (B1/B).

GE Capital Markets is the lead on the deal.

Commitments are due on Sept. 23, the source added.

Proceeds will be used to refinance existing debt and to fund a distribution to shareholders.

Court Square Capital Partners is the sponsor.

Vestcom is a Little Rock, Ark.-based provider of outsourced shelf-edge media solutions to retail food, drug and mass merchants.

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