Victory Capital launches $1.13 billion loan at Libor plus 350 bps

By Sara Rosenberg

New York, May 21 – Victory Capital Holdings Inc. launched on Tuesday its $1.13 billion seven-year term loan B with price talk of Libor plus 350 basis points with a 0% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $1.23 billion of senior secured credit facilities (Ba3/BB-) also include a $100 million five-year revolver.

Barclays, RBC Capital Markets and BMO Capital Markets are the bookrunners on the deal.

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

Proceeds will be used to fund the acquisition of USAA Asset Management Co. for $850 million plus the opportunity for additional contingent payments based on future business performance.

Closing is expected on July 1, subject to regulatory approval and other customary conditions.

Victory Capital is a Brooklyn, Ohio-based asset management firm. USAA Asset Management is a San Antonio-based investment firm.

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