Vestcom Said to Boost Rate on $172 Million Term Loan for Buyout

Vestcom International Inc. increased the rate it will pay on a $172 million term loan it’s seeking to back its buyout by Court Square Capital Partners LP, according to a person with knowledge of the transaction.

The debt, due in six-years, will now pay interest at 5.75 percentage more than the London interbank offered rate, that’s up from 4.75 percentage points, said the person, who asked not to be identified because the information is private. The Libor floor will remain unchanged at 1.25 percent floor.

Vestcom is now proposing to sell the loan at 98.5 cents on the dollar, compared with 99 cents initially proposed, the person said, reducing proceeds for the company and boosting the yield to investors.

Lenders are being offered one-year soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first year, said the person.

GE Capital Markets, the lending unit of General Electric Co., is arranging the financing, which also includes a $25 million, five-year revolving line of credit, according to data compiled by Bloomberg.

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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