Veritext wraps roughly $176 million of incremental term loans

By Sara Rosenberg

New York, Dec. 1 – Veritext Corp. (VT TopCo Inc.) completed a fungible $150 million incremental first-lien term loan due Aug. 4, 2025 and a fungible $26.25 million incremental delayed-draw first-lien term loan that is available until Aug. 4, 2023, according to a market source.

Pricing on the term loan debt (B2/B) is Libor plus 375 basis points with a 0.75% Libor floor, in line with existing first-lien term loan pricing, and the debt has 101 soft call protection until Feb. 4, 2022.

The incremental term loan was sold at an original issue discount of 99.25 and the incremental delayed-draw term loan was issued at a discount of 99.5, to be paid at the time of drawing, the source said.

The delayed-draw ticking fee is the full spread at close.

Jefferies LLC is the lead arranger on the deal.

Proceeds will be used to fund a distribution to shareholders.

Pro forma for the transaction, the first-lien term loan will total $550 million and the delayed-draw term loan will total $96.25 million.

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

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