Vestis wraps $800 million term loan B at SOFR plus 225 bps at 99.75; loan breaks to 99 7/8 bid

By Paul A. Harris

Portland, Ore., Feb. 15 – Vestis Corp. priced its $800 million seven-year covenant-lite term loan B (Ba2/BB+) with a SOFR plus 225 basis points spread at 99.75 and allocated the deal on Thursday, according to a market source.

The paper broke to 99 7/8 bid, then settled to par bid, par ½ offered, the source said.

The loan came at 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. JPMorgan is the administrative agent.

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.

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