Moody’s rates Veritext loans B2, Caa2

Moody's assigned B2 ratings to VT Topco, Inc.’s (Veritext) planned $400 million incremental first-lien senior secured term loan, the company's proposed $70 million first-lien senior secured delayed-draw term loan, the company's $55 million senior secured first-lien revolver which is being extended to 2025 and a Caa2 rating to the company's planned $200 million incremental senior secured second-lien term loan.

Moody’s also affirmed Veritext’s B3 corporate family rating, B3-PD probability of default rating, the B2 rating on the outstanding first-lien senior secured credit facility, and the Caa2 rating on the existing second-lien senior secured term loan.

Term loan proceeds and cash will be used to fund a $555 million dividend payment, pay down the revolver balance and pay transaction fees and expenses.

The delayed-draw term loan availability expires in 24 months. Its proceeds can be used to finance one or more permitted investments, to finance earn-outs related to permitted investments, and to repay revolving loans that were used to fund permitted acquisitions or earn-outs. The company is also extending the maturity of its revolver to 2025.

The outlook is stable.

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