Vencore reduces pricing on first- and second-lien term loans

By Sara Rosenberg

New York, June 9 – Vencore Inc. lowered pricing on its $545 million first-lien term loan due Nov. 23, 2019 to Libor plus 475 basis points from Libor plus 500 bps and on its $240 million second-lien term loan due May 23, 2020 to Libor plus 875 bps from Libor plus 900 bps, according to a market source.

Also, the original issue discount on the second-lien term loan firmed at 98, the tight end of the 97.5 to 98 talk, the source said.

Both term loans still have a 1% Libor floor, the first-lien term loan still has an original issue discount of 99.28 and 101 soft call protection for one year, and the second-lien term loan still has call protection of 102 in year one and 101 in year two.

Earlier in syndication, the first-lien term loan was upsized from $515 million as the second-lien term loan was downsized from $270 million, and the discount on the first-lien tranche was revised from 99.25.

Recommitments are due on Friday, the source added.

UBS Investment Bank is the lead on the $785 million of term loans.

Proceeds will be used to refinance existing debt and fund a dividend.

As before, the company is also seeking an amendment to its existing credit agreement, and first- and second-lien loan lenders are being offered a 25 bps consent fee.

Vencore, formerly known as the SI Organization Inc., is a Chantilly, Va.-based provider of information solutions, engineering and analysis to the U.S. intelligence community, Department of Defense and federal/civilian agencies.

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