V.Group revises first- and second-lien term loan sizes and pricing

By Sara Rosenberg

New York, June 17 – V.Group upsized its seven-year covenant-light first-lien term loan (B1/B) to $275 million from $260 million and downsized its 7˝-year covenant-light second-lien term loan (Caa1/CCC+) to $110 million from $125 million, according to a market source.

Additionally, pricing on the first-lien term loan was reduced to Libor plus 400 basis points from talk of Libor plus 425 bps to 450 bps, a step-down was added to Libor plus 375 bps when total net leverage is 4.5 times and the original issue discount was tightened to 99˝ from 99, the source said.

Furthermore, pricing on the second-lien term loan was cut to Libor plus 750 bps from talk of Libor plus 775 bps to 800 bps and the discount firmed at 99, the tight end of the 98˝ to 99 guidance, 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 hard call protection of 102 in year one and 101 in year two.

The company’s $420 million credit facility also includes a $35 million five-year revolver (B1/B).

Recommitments were due at 5 p.m. ET on Tuesday, the source added. New orders were due at noon ET on Tuesday.

RBC Capital Markets and Goldman Sachs Bank USA are the lead banks on the deal, with RBC left lead on the first-lien loan and Goldman left lead on the second-lien loan.

Proceeds will be used to refinance existing debt and to pay a dividend.

V.Group is a supplier of specialist outsourcing services to asset owners and operators in the shipping, offshore, leisure and defense sectors.

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