VerticalScope launches credit facilities at Libor plus 275 bps

By Sara Rosenberg

New York, Sept. 12 – VerticalScope launched on Tuesday its $170 million of five-year credit facilities with price talk of Libor plus 275 basis points with no Libor floor, according to a market source.

The spread is based on net leverage ratio grid.

The facilities consist of a $10 million revolver and a $160 million term loan that includes a $50 million delayed-draw tranche.

Upfront fees are 50 bps for commitments of $30 million or more, 37.5 bps for commitments of $20 million to less than $30 million, and 25 bps for commitments of less than $20 million, the source said.

The unused fee is based on net leverage ratio grid with opening pricing of 37.5 bps.

Capital One is the lead on the deal.

Commitments are due on Sept. 26, the source added.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Closing net leverage is expected to about 2.7 times LTM EBITDA.

VerticalScope is a Toronto-based online media company that owns and operates consumer resource websites and enthusiast social communities.

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