Vertex Aerospace frees to trade; Dave & Buster’s loan changes surface; Vistage sets talk

By Sara Rosenberg

New York, June 22 – Vertex Aerospace Services Corp. modified the issue price on its incremental term loan B and then the debt made its way into the secondary market on Wednesday afternoon.

In other happenings, Dave & Buster’s Inc. widened the spread and original issue discount on its term loan B and sweetened the call protection, and Vistage Worldwide announced price talk on its first-lien term loan in connection with its lender call.

Vertex tweaked, breaks

Vertex Aerospace revised the original issue discount on its non-fungible $260 million incremental term loan B (B1/B+) due Dec. 6, 2028 to 95 from 96, according to a market source.

The term loan is still priced at SOFR+10 basis points CSA plus 400 bps with a 0.75% floor and has 101 soft call protection for six months.

Commitments were due at 12:30 p.m. ET on Wednesday and the incremental term loan began trading in the afternoon, with levels quoted at 95½ bid, 96½ offered, a trader added.

RBC Capital Markets, MUFG, Stifel, US Bank and Citizens Bank are leading the deal that will be used to support the company’s merger with Vectrus Inc.

Closing is expected in the third quarter.

Vertex is a Madison, Miss.-based defense aerospace company. Vectrus is a Colorado Springs-based military and government services company.

Dave & Buster’s revised

Dave & Buster’s lifted pricing on its $850 million seven-year covenant-lite term loan B (B1/B) to SOFR plus 500 bps from SOFR plus 450 bps, changed the original issue discount to 95 from talk in the range of 96 to 97 and extended the 101 soft call protection to one year from six months, a market source remarked.

Changes were also made to MFN, accordion, asset sale sweeps, restricted payments, indebtedness, investments in unrestricted subsidiaries, joint ventures and similar businesses and adjusted EBITDA/“pro forma basis”, and the cumulative credit was removed, the source continued.

As before, the term loan has a 0.5% floor and CSA of 10 bps.

Commitments are due at noon ET on Thursday, revised from noon ET on Wednesday, the source added.

Dave & Buster’s leads

Deutsche Bank Securities Inc., JPMorgan Chase Bank, BMO Capital Markets, Wells Fargo Securities LLC, Truist, Capital One and Fifth Third are leading Dave & Buster’s term loan B.

The debt will be used with cash on hand to fund the acquisition of Main Event Entertainment Inc., a Dallas-based family entertainment concept, from Ardent Leisure Group Ltd. and RedBird Capital Partners in a transaction with a total enterprise value of $835 million.

Closing is expected this year, subject to customary conditions, including approval by Ardent Leisure stockholders and regulatory review.

Dave & Buster’s is a Coppell, Tex.-based owner and operator of entertainment and dining venues.

Vistage guidance

Vistage Worldwide held its lender call on Wednesday afternoon and disclosed talk on its $445 million first-lien term loan (B1/B) as SOFR+CSA plus 525 bps with a 0.75% floor, an original issue discount of 97.25 and 101 soft call protection for six months, a market source said.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due on July 6, the source added.

The company’s $630 million of credit facilities also include a $50 million revolver and a $135 million privately placed second-lien term loan.

Golub Capital, Macquarie Capital (USA) Inc., Truist and Capital One are leading the deal that will be used to help fund the buyout of the company by Gridiron Capital from Providence Equity.

Closing is expected in July, subject to customary conditions.

Vistage is a San Diego-based member-based advisory company for executives of businesses.

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