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VCA enters $1.4 billion revolver with BofA Merrill, JPMorgan, SunTrust
By Jennifer Chiou
New York, Aug. 27 – VCA Inc. entered into a new $1.4 billion revolving credit facility, which provides for a $600 million of senior term notes, which will be used to retire the roughly $534 million of outstanding term notes under its existing credit facility, as well as an $800 million revolving facility.
“I am pleased that, as a result of our steadily increasing operating results, our consistent cash flow and the outstanding efforts of Bank of America Merrill Lynch, J.P. Morgan Securities LLC, and SunTrust Robinson Humphrey, we were able to obtain financing at very attractive terms, lowering our borrowing cost and providing us the financial flexibility to continue to grow our business while optimizing our capital structure,” chairman and CEO Bob Antin said in a news release.
The new undrawn revolving facility replaces the company’s $125 million revolver, the release noted.
The new senior term loan and revolver are priced initially at Libor plus 175 basis points. The spread will change depending on the company’s ratio of debt to EBITDA.
“We recently completed the entire $125 million share repurchase that was previously authorized by the board of directors. The board has authorized the continuance of a share repurchase program authorizing the repurchase of an additional $400 million of common stock,” Antin added in the release.
“With this new credit facility that allows for a leverage ratio of up to 4.5x, we now have greater flexibility to take advantage of future opportunities to grow the company and create shareholder value.”
VCA is a Los Angeles-based animal health care company.
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