Varsity Brands upsizes notes to $150 million, tightens spread, OID; pricing Thursday

By Paul A. Harris

Portland, Ore., June 11 – Varsity Brands upsized its offering of Hercules Achievement, Inc. and Varsity Brands Holding Co., Inc. floating-rate senior secured notes due Dec. 22, 2024 (CCC+) to $150 million from $100 million, according to an informed source.

Price talk tightened. The spread to Libor is set at 800 basis points, tighter than the 825 bps to 850 bps spread talk. The OID is set at 97, rich to the 96 price talk. The Libor floor remains unchanged at 1%.

The notes are non-callable in the first year, then become callable in the second year at 101, decreased from 102. After the second year the call price falls to par.

The notes are co-terminus with the company’s term loan.

Commitments are due at 2 p.m. ET on Thursday, an acceleration of original timing, which had the true private placement in the market until Friday.

Jefferies LLC is the placement agent.

The Memphis, Tenn.-based provider of sports, cheerleading and achievement-related products to schools in the United States plans to use the proceeds to pay down its revolving credit facility and strengthen its liquidity position.

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