By Paul A. Harris
Portland, Ore., Aug. 3 – Veritext priced a downsized $500 million issue of VT TopCo, Inc. seven-year senior secured notes (B2/B/B+) at par to yield 8½% on Thursday, according to market sources.
The issue size decreased from $720 million.
The yield printed at the tight end of the 8½% to 8¾% yield talk and inside of early guidance in the high 8% area.
The deal was heard to be playing to $1.2 billion of demand on Thursday morning, according to a trader.
The new VT TopCo 8½% notes were par ¾ bid, 101 offered late Thursday, the trader added.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, BNP Paribas Securities Corp., Jefferies LLC, Macquarie Capital (USA) Inc. and KKR Capital Markets LLC managed the sale.
The company shifted the $220 million amount by which the notes issue downsized to its concurrent term loan B, increasing the loan size to $940 million from $720 million.
The Florham Park, N.J.-based provider of legal services to law firms and corporations plans to use proceeds from the loan and notes to refinance its capital structure and add cash to its balance sheet.
| Issuer: | VT TopCo, Inc.
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| Amount: | $500 million, decreased from $720 million
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| Issue: | Senior secured notes
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| Maturity: | August 2030
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| Managers: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, BNP Paribas Securities Corp., Jefferies LLC, Macquarie Capital (USA) Inc. and KKR Capital Markets LLC
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| Coupon: | 8½%
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| Price: | Par
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| Yield: | 8½%
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| Call protection: | Three years
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| Trade date: | Aug. 3
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| Ratings: | Moody’s: B2
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| S&P: B
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| Fitch: B+
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 8½% to 8¾%
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| Marketing: | Roadshow
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