Vaco lifts term loan to $700 million cuts spread to SOFR plus 500 bps

By Sara Rosenberg

New York, Jan. 20 – Vaco Holdings LLC upsized its seven-year first-lien term loan to $700 million from $600 million and reduced pricing to SOFR+CSA plus 500 basis points from SOFR+CSA plus 525 bps to 550 bps, according to a market source.

Also, the original issue discount on the term loan was revised to 99.5 from 99, the source said.

The term loan still has a 0.75% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

The company’s now $740 million of credit facilities, up from $640 million, also include a $40 million five-year revolver.

Jefferies LLC, Antares Capital and KKR Capital Markets are the bookrunners on the deal.

Recommitments were scheduled to be due at 11 a.m. ET on Thursday, the source added.

Proceeds will be used to repay existing debt and fund a shareholder distribution.

Vaco is a provider of staffing and consulting services.

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