Vertafore cuts spread on $1.1 billion term loan to Libor plus 375 bps

By Sara Rosenberg

New York, June 16 – Vertafore (VF Holding Corp.) reduced pricing on its $1.1 billion seven-year covenant-light first-lien term loan to Libor plus 375 basis points from talk of Libor plus 400 bps to 425 bps, according to a market source.

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

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $1.2 billion credit facility (B2/B-) also includes a $100 million five-year revolver.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc. and Mizuho are the leads on the deal.

Commitments were scheduled to be due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used to help fund the buyout of the company by Bain Capital Private Equity and Vista Equity Partners from TPG Capital.

Closing is expected in the third quarter.

Vertafore is a Bothell, Wash.-based provider of software and information to the insurance distribution channel.

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