Victory Capital revises OID on $146 million add-on term loan to 98.5

By Sara Rosenberg

New York, June 2 – Victory Capital Operating LLC tightened the original issue discount on its fungible $146 million add-on term loan due Oct. 31, 2021 to 98.5 from 98, according to a market source.

The add-on term loan is still priced at Libor plus 750 basis points with a 1% Libor floor and still has 101 soft call protection for one year.

Recommitments are due by 3 p.m. ET on Friday, the source said.

Allocations are targeted for Monday.

RBC Capital Markets is the lead on the deal.

Proceeds will be used to help fund the acquisition of RS Investments from the Guardian Life Insurance Co. of America and the investment professionals and employees of RS.

In connection with the add-on loan, pricing on the existing term loan due Oct. 31, 2021 will be increased from Libor plus 600 bps with a 1% Libor floor to match the add-on pricing.

Closing is expected on June 30.

Victory Capital is a Brooklyn, Ohio-based asset management firm. RS is a San Francisco-based provider of investment management solutions.

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