Vestis Corporation (VSTS) has released an update.
On February 22, 2024, the Company secured a new $800 million term loan with a maturity date of 2031 to refinance an existing loan, opting for interest rates tied to SOFR or the Base Rate plus a margin. This strategic financial maneuver includes an interest rate reduction contingent on the Company’s leverage ratio, a 1% annual amortization, and a soft call provision. Additionally, mandatory prepayments are linked to the Company’s excess cash flow and leverage ratio achievements. The loan is backed by the Company’s assets and includes standard covenants and default events, ensuring a robust financial framework for future operations.
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