Vestcom lifts first-lien term loan to $345 million, updates pricing

By Sara Rosenberg

New York, Dec. 16 – Vestcom International Inc. upsized its covenant-light first-lien term loan (B2) to $345 million from $335 million and firmed pricing at Libor plus 425 basis points, the low end of the Libor plus 425 bps to 450 bps talk, according to a market source.

Furthermore, a pricing step-down was added to the first-lien term loan to Libor plus 400 bps at total net leverage of 5.5 times and the original issue discount was changed to 99.5 from 99, the source said.

In addition, the MFN sunset was eliminated.

The first-lien term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s credit facility also includes a $40 million revolver (B2) and a $158 million second-lien term loan that has been privately placed.

Antares Capital, Credit Suisse Securities (USA) LLC, RBC Capital Markets and Barclays are the joint lead arrangers on the deal.

Proceeds will be used to help fund the buyout of the company by Charlesbank Capital Partners from Court Square Capital Partners.

As a result of the first-lien term loan upsizing, the equity investment for the transaction was reduced by $10 million, the source added.

Closing is expected on Monday.

Vestcom is a Little Rock, Ark.-based provider of outsourced shelf-edge information and media solutions.

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