GE Commercial Finance and Bank of America have provided a $200 million, four-year revolver for Vertis that replaces a $250 million facility set to expire in December. The new revolver for the advertising and media services provider cuts borrowing costs and improves covenants. Pricing for the new deal is LIBOR plus 2 3/4%, 75 basis points lower than the previous revolver. The new credit will also have no leverage and interest-rate covenants, but will have a minimum EBITDA covenant.
"When we went into the market we found that the arrangement that we were able to put together with GE and B of A was the right deal at the right time," said Steve Tremblay, Vertis senior v.p. of finance and treasurer. B of A was documentation agent in the previous credit that was jointly led by J.P. Morgan and Deutsche Bank. Tremblay said Vertis decided to add GE after the bank approached the company and offered a competitive deal. Vertis' relationship with B of A goes back to a leveraged buyout in 1999.