Varsity Brands privately placing $100 million floaters due 2024; talk Libor plus 825-850 bps at 96

By Paul A. Harris

Portland, Ore., June 9 – Varsity Brands plans to privately place $100 million of Hercules Achievement, Inc. and Varsity Brands Holding Co., Inc. floating-rate senior secured notes due Dec. 22, 2024, according to an informed source.

The notes, which are co-terminus with the term loan, are talked with an 825 basis points to 850 bps spread to Libor at 96. There is a 1% Libor floor.

The notes are non-callable in the first year, then become callable in the second year at 102. After the second year the call price falls to par.

The deal, which is a true private placement, kicks off on an investor call set for 2 p.m. ET on Tuesday.

Commitments are due at noon ET on Friday.

Jefferies LLC is the placement agent.

The Memphis, Tenn.-based provider of sports, cheerleading and achievement-related products to schools in the United States plans to use the proceeds to pay down its revolver and strengthen its liquidity position.

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