Veregy trims term loan to $248 million, flexes to Libor plus 600 bps

By Sara Rosenberg

New York, Nov. 2 – Veregy downsized its seven-year covenant-lite first-lien term loan to $248 million from $250 million and increased pricing to Libor plus 600 basis points from Libor plus 575 bps, according to a market source.

Also, the original issue discount on the term loan was revised to 97 from talk in the range of 98 to 98.5 and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 1% Libor floor.

In addition, the company removed a $50 million delayed-draw term loan available for 24 months from the capital structure.

The company’s now $290.5 million of credit facilities, down from $342.5 million, still include a $42.5 million revolver.

UBS Investment Bank and BNP Paribas Securities Corp. are the leads on the deal.

Recommitments were scheduled to be due at 1 p.m. ET on Monday, the source added.

Proceeds will be used to help fund the buyout of the company by Court Square Capital.

Veregy is a Phoenix-based provider of energy efficiency solutions, solar and smart building technology.

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