Veritext releases price talk on first- and second-lien term loans

By Sara Rosenberg

New York, July 22 – Veritext Corp. (VT TopCo Inc.) announced price talk on its non-fungible $400 million incremental first-lien term loan (B2/B) due August 2025, $70 million delayed-draw for 24 months first-lien term loan (B2/B) and non-fungible $200 million incremental second-lien term loan (Caa2/CCC+) due August 2026 with its bank meeting on Thursday, according to a market source.

Price talk on the incremental first-lien term loan and delayed-draw term loan, which are being sold as a strip, is Libor plus 375 basis points to 400 bps with a 0.75% Libor floor and an original issue discount of 99, the source said.

Talk on the incremental second-lien term loan is Libor plus 700 bps with a 0.75% Libor floor and a discount of 98.5 to 99.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Delayed-draw ticking fees are half the margin from days 46 to 90 and the full margin thereafter.

The company’s $725 million of credit facilities also include a $55 million revolver (B2/B) due 2025.

Jefferies LLC, BNP Paribas Securities Corp. and Macquarie Capital (USA) Inc. are the lead arrangers on the deal.

Commitments are due at 5 p.m. ET on Aug. 2, the source added.

Proceeds will be used to fund a distribution to shareholders, pay down the existing revolver balance and extend the existing revolver by two years to 2025.

Veritext is a Livingston, N.J.-based provider of deposition and litigation support solutions for law firms and corporations.

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