Victory Capital cuts term B to $295 million, flexes pricing higher

By Sara Rosenberg

New York, Sept. 30 – Victory Capital Management downsized its seven-year term loan B to $295 million from $310 million and raised pricing to Libor plus 600 basis points from talk of Libor plus 450 bps to 475 bps, according to a market source.

Also, the term loan now has 101 hard call protection for one year instead of 101 soft call protection for six months and the MFN sunset provision was removed, the source said.

The term B still has a 1% Libor floor and an original issue discount of 99.

There is a ticking fee on the term loan B of the full spread and floor after 30 days.

Amortization on the B loan has been set at 5% annually, and the incremental is $85 million with the available amount now subject to a 4 times net total leverage test, the source continued.

The company’s now $320 million senior secured credit facility, down from $335 million, also includes a $25 million revolver.

Recommitments were due at 5 p.m. ET on Tuesday.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are the joint lead arrangers and joint bookrunners on the deal.

Proceeds will be used to help fund the acquisition of Munder Capital Management.

The all-cash purchase will form a new independent investment advisory firm based in Cleveland.

Additional equity financing for the new company will be led by funds managed by Crestview Partners and Reverence Capital Partners.

The $15 million of funds removed from the term loan B had been previously earmarked for an identified acquisition, the source added.

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