Vestcom flexes $344 million term loan to Libor plus 400 bps

By Sara Rosenberg

New York, June 26 – Vestcom wrapped syndication of its $344 million covenant-light term loan due Dec. 19, 2023 at Libor plus 400 basis points with a step-down to Libor plus 375 bps when total net leverage falls below 5.5 times, according to a market source.

Pricing was increased from initial talk of Libor plus 375 bps and the step-down was added.

With the pricing flex, the 101 soft call protection on the term loan was extended to one year from six months.

The term loan still has a 1% Libor floor and a par issue price.

Allocations were communicated on Friday afternoon, and the transaction is expected to close on Tuesday, the source added.

Antares Capital is the lead on the deal.

Proceeds will be used to refinance an existing term loan priced at Libor plus 425 bps with a step-down to Libor plus 400 bps at total net leverage of 5.5 times and a 1% Libor floor.

Vestcom is a Little Rock, Ark.-based provider of outsourced shelf-edge information and media solutions.

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