Liftoff/Vungle ups term loan B to $1.4 billion, finalizes pricing

By Sara Rosenberg

New York, Sept. 23 – Liftoff Mobile Inc./Vungle Inc. (Red Planet Borrower LLC) upsized its seven-year senior secured covenant-lite term loan B to $1.4 billion from $1.25 billion and firmed pricing at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, according to a market source.

In addition, the original issue discount on the term loan was set at 99.5, the tight end of the 99 to 99.5 talk, the source said.

As before, the term loan has a 0.5% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.

The company’s now $1.55 billion of credit facilities, up from $1.4 billion, also include a $150 million revolver.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Nomura, Goldman Sachs Bank USA, Barclays and Mizuho are the joint bookrunners on the deal. Morgan Stanley is the administrative agent.

Recommitments were scheduled to be due at 12:45 p.m. ET on Thursday, the source added.

Proceeds will be used to refinance the company’s existing capital structure and pay a one-time dividend distribution to shareholders, which was increased with the term loan upsizing.

Liftoff/Vungle is a Redwood City, Calif.-based platform that fuels the mobile app growth cycle.

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