Virtus launches $360 million credit facility at Libor plus 400 bps

By Sara Rosenberg

New York, Feb. 16 – Virtus Investment Partners Inc. released price talk on its $360 million senior secured credit facility in connection with its lenders’ presentation on Thursday, according to a market source.

The $100 million five-year revolver is talked at Libor plus 400 basis points with a 0% Libor floor, and the $260 million seven-year first-lien term loan B is talked at Libor plus 400 bps with a 0.75% Libor floor and an original issue discount of 99 to 99.5, the source said.

Included in the term loan is 101 soft call protection for six months and amortization of 1% per annum.

The credit facility has a total net leverage covenant.

Morgan Stanley Senior Funding Inc., Barclays, J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the joint lead arrangers on the deal, and Morgan Stanley and Barclays are the joint bookrunners.

Commitments are due on March 2, the source added.

Proceeds will be used to help fund the acquisition of RidgeWorth Investments from Lightyear Capital LLC.

The transaction values RidgeWorth at $472 million, and Virtus will also acquire certain investments at their fair value as of closing, for total consideration of about $513 million.

Closing is expected in mid-2017, subject to customary conditions and regulatory, fund shareholder and other client approvals.

Virtus is a Hartford, Conn.-based provider of investment management products and services. RidgeWorth is an Atlanta-based multi-boutique asset management firm.

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