Vestcom opts not to upsize term loan; final size set at $335 million

By Sara Rosenberg

New York, Dec. 19 – Vestcom International Inc. decided not to upsize its covenant-light first-lien term loan (B2) to $345 million from $335 million, so the tranche size remained at $335 million, according to a market source.

Pricing on the loan is Libor plus 425 basis points with a step-down to Libor plus 400 bps at total net leverage of 5.5 times and a 1% Libor floor.

The first-lien term loan was sold at an original issue discount of 99.5 and includes 101 soft call protection for six months.

During syndication, pricing on the first-lien term loan firmed at the low end of the Libor plus 425 bps to 450 bps talk, the step-down was added, the discount was revised from 99 and the MFN sunset was eliminated.

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 are being used to help fund the buyout of the company by Charlesbank Capital Partners from Court Square Capital Partners.

If the first-lien term loan had been upsized, the equity investment for the transaction would have been reduced by $10 million.

Closing was expected on Monday.

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

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