ZEST ups spread on $160 million first-lien loan to Libor plus 550 bps

By Sara Rosenberg

New York, Aug. 13 - ZEST Anchors Inc. raised pricing on its $160 million seven-year first-lien term loan (B2/B) to Libor plus 550 basis points from talk of Libor plus 475 bps to 500 bps, according to a market source.

Also, the original issue discount was moved to 98 from 99 and the 101 soft call protection was extended to one year from six months, the source said.

The first-lien term loan still has a 1% Libor floor.

Other changes made to the loan included increasing the excess cash flow sweep to 75% from 50% and revising the incremental allowance to $25 million from $40 million, plus additional amounts up to 3.75 times net first-lien leverage and 5.75 times net total leverage, the source remarked.

The company's $260 million credit facility also includes a $20 million revolver (B2/B) and an $80 million second-lien term loan that has already been placed.

Recommitments were due at 5 p.m. ET on Tuesday.

Deutsche Bank Securities Inc., Fifth Third Securities Inc. and RBS Citizens are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Avista Capital Partners from Jordan Co.

ZEST is an Escondido, Calif.-based manufacturer and distributor of dental solutions for the treatment of edentulous patients.

© 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.