Volume Services to obtain new credit facility via CIBC

By Sara Rosenberg

New York, Feb. 13 - Volume Services America Holdings Inc. expects to enter into a new senior secured credit facility consisting of a revolver and a term loan. CIBC World Markets Corp. will act as lead arranger and sole bookrunner on the deal, according to a filing with the Securities and Exchange Commission.

Security for the loan is a pledge of inter-company debt, 100% of the capital stock of wholly-owned domestic subsidiaries, 65% of the capital stock of certain wholly-owned foreign subsidiaries and a security interest in certain assets of subsidiaries that are not foreign subsidiaries, according to the filing.

Proceeds from the revolver will be used for general corporate purposes, including working capital, capital expenditures, payment of dividends and letters of credit. Upon closing, a portion of the facility will be used to help fund a tender offer and consent solicitation for the company's senior subordinated notes.

The new credit facility is part of a recapitalization that includes the issuance of units made up of notes and stock.

Volume Services is a Spartanburg, S.C. provider of food and beverage concessions, high-end catering and merchandise services for sports facilities, convention centers and other entertainment facilities.

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