Vision Solutions to launch $385 million credit facility on Thursday

By Sara Rosenberg

New York, March 1 - Vision Solutions Inc. is set to hold a bank meeting on Thursday to launch a $385 million credit facility, according to a market source.

Jefferies & Co. is the lead bank on the deal.

The facility consists of a $15 million revolver, a $240 million first-lien term loan and a $130 million second-lien term loan, the source said.

Proceeds will be used to repay $223 million of existing bank loans, redeem $33 million of preferred stock and fund a $118 million dividend to stockholders.

Last summer, the company completed a $255 million senior secured credit facility comprised of a $15 million revolver and a $240 million term loan, with both tranches priced at Libor plus 600 bps with a 1.75% Libor floor and sold at an original issue discount of 96. The term loan includes 101 soft call protection for one year.

Proceeds from the original deal were used to help fund the acquisition of Double-Take Software Inc.

With this new deal, leverage through the first-lien will be 3.6 times and leverage through the second-lien will be 5.6 times, the source added.

Vision Solutions is an Irvine, Calif.-based provider of high availability, disaster recovery and system management services for IBM Power Systems.

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