Vestis finalizes $800 million term loan B at SOFR plus 225 bps

By Sara Rosenberg

New York, Feb. 14 – Vestis Corp. firmed pricing on its $800 million seven-year covenant-lite term loan B (Ba2/BB+) at SOFR plus 225 basis points, the low end of the SOFR plus 225 bps to 250 bps talk, and added a step-down to SOFR plus 200 bps at 3.3x first-lien net leverage, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.75 from 99.5, the source said.

The term loan still has a 0% floor, 101 soft call protection for six months and amortization of 1% per annum.

Security is a first lien on substantially all loan party personal property assets, subject to customary exclusions.

Wells Fargo Securities LLC is the left lead arranger on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Wednesday, the source added, accelerated from an original deadline of noon ET on Thursday.

Allocations are expected on Thursday morning.

Proceeds will be used to refinance an existing $800 million term loan A-1 due 2025.

Vestis is a Roswell, Ga.-based provider of uniform rentals and workplace supplies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.