Victory Capital Announces Pricing of $505 Million Incremental Term Loan Facility to Fund WestEnd Advisors Acquisition
November 22 2021 - 8:00AM
Business Wire
Victory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital”
or the “Company”) today announced that it has successfully
completed the syndication of a $505 million Incremental Term Loan
Facility (the “Incremental Facility”) to fund the acquisition of
WestEnd Advisors. The Incremental Facility will bear interest at a
rate per annum equal to LIBOR, subject to a 50-basis point floor,
plus a margin of 225 basis points, and will mature in 2028.
“The successful syndication of the term loan is a testament to
the confidence our debt investors have in our long-term value
creation strategy,” said David Brown, Chairman and Chief Executive
Officer. “We appreciate their support in providing financing for
strategic and accretive growth opportunities. The interest rate
spread on this Incremental Facility is the same as our 2019 term
loan after it was re-priced twice, reducing its spread by 100 basis
points, to 225 basis points over LIBOR.”
The acquisition of WestEnd Advisors and the funding of the
Incremental Facility are expected to occur by the end of this year,
subject to customary approvals, conditions and consents.
BofA Securities, Inc., Royal Bank of Canada, and Barclays Bank
PLC acted as the Incremental Facility’s joint lead arrangers.
About Victory Capital
Victory Capital is a diversified global asset management firm
with $162.6 billion in assets under management as of October 31,
2021. The Company operates a next-generation business model
combining boutique investment qualities with the benefits of a
fully integrated, centralized operating and distribution
platform.
Victory Capital provides specialized investment strategies to
institutions, intermediaries, retirement platforms and individual
investors. With 11 autonomous Investment Franchises and a Solutions
Platform, Victory Capital offers a wide array of investment styles
and investment vehicles including, actively managed mutual funds,
separately managed accounts, active ETFs, multi-asset class
strategies, custom-designed solutions, private funds, and a 529
Education Savings Plan.
For more information, please visit www.vcm.com or follow us:
Twitter and LinkedIn
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements may include, without limitation, any
statements preceded by, followed by or including words such as
“target,” “believe,” “expect,” “aim,” “intend,” “may,”
“anticipate,” “assume,” “budget,” “continue,” “estimate,” “future,”
“objective,” “outlook,” “plan,” “potential,” “predict,” “project,”
“will,” “can have,” “likely,” “should,” “would,” “could” and other
words and terms of similar meaning or the negative thereof. Such
forward-looking statements involve known and unknown risks,
uncertainties and other important factors beyond Victory Capital’s
control such as the COVID-19 pandemic and its effect on our
business, operations and financial results going forward, as
discussed in Victory Capital’s filings with the SEC, that could
cause Victory Capital’s actual results, performance or achievements
to be materially different from the expected results, performance
or achievements expressed or implied by such forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20211122005738/en/
Investors: Matthew Dennis, CFA Chief of Staff Director, Investor
Relations 216-898-2412 mdennis@vcm.com
Media: Tricia Ross 310-622-8226 tross@finprofiles.com
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