VC GB Holdings shifts funds between term loans, updates pricing

By Sara Rosenberg

New York, Feb. 22 – VC GB Holdings Inc. upsized its seven-year covenant-light first-lien term loan to $500 million from $490 million and downsized its eight-year covenant-light second-lien term loan to $150 million from $160 million, according to a market source.

Also, pricing on the first-lien term loan was trimmed to Libor plus 375 basis points from talk of Libor plus 400 bps to 425 bps, and pricing on the second-lien term loan firmed at Libor plus 800 bps, the low end of the Libor plus 800 bps to 825 bps talk, the source said.

Furthermore, the original issue discount on the first-lien term loan was tightened to 99.5 from 99.

Other changes included setting the 50 bps MFN protection for 18 months, revised from 12 months, removing the $50 million carve-out from MFN and capping cost savings add-backs at 25%, the source continued.

Both term loans still have a 1% Libor floor, the first-lien term loan still has 101 soft call protection for six months, and the second-lien term loan still has a discount of 98.5 and hard call protection of 102 in year one and 101 in year two.

Deutsche Bank Securities Inc. and Barclays are the bookrunners on the $650 million in term loans.

Recommitments were scheduled to be due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to help fund AEA Investors LP’s investment in Visual Comfort alongside its current investment in Generation Brands.

Closing is expected on Feb. 28.

VC GB is a decorative lighting company.

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