Virtus Investment Partners Completes Refinancing of Debt

Rhea-AI Summary

Virtus Investment Partners, Inc. (NASDAQ: VRTS) announced the completion of a $275 million senior secured term loan and a $175 million revolving credit facility refinancing. This new arrangement extends the debt maturity profile and provides improved terms, including a lower cost of capital.

The term loan matures in 2028 with interest at LIBOR plus 225 basis points, replacing an existing loan bearing a higher interest rate. Funds will be utilized to pay off an existing $194 million term loan and for general corporate needs.

Positive

• Refinancing of debt improves financial flexibility.
• Lower cost of capital due to reduced interest rates.
• Extended debt maturity profile, with term loan maturing in 2028.

Negative

• None.

HARTFORD, Conn., Sept. 28, 2021 /PRNewswire/ -- Virtus Investment Partners, Inc. (NASDAQ: VRTS), which operates a multi-boutique asset management business, today announced that it has completed the refinancing of its existing credit agreement with a new $275 million senior secured term loan and $175 million revolving credit facility. The refinancing extends the company's debt maturity profile and provides improved terms.

The new $275 million term loan has a scheduled maturity in 2028 and bears interest at a rate of LIBOR plus 225 basis points, with no LIBOR floor rate. The previous term loan had a rate of LIBOR plus 225 to 250 basis points, depending on net leverage levels, and a LIBOR floor of 75 basis points. Proceeds will be used to repay the company's existing $194 million term loan, as well as for general corporate purposes.

The new credit line, which bears interest at the same rate as the term loan, provides up to $175 million of borrowing capacity through 2026 and replaces a $100 million revolving credit facility.

"We are pleased to successfully complete the refinancing, which lowers our cost of capital and improves our financial flexibility through an extended term," said Chief Financial Officer Michael A. Angerthal. "With an enhanced capital position and strong free cash flow, we continue to prioritize investing in the growth of the business, returning capital to shareholders, and maintaining appropriate levels of debt."

The term loan was arranged by Morgan Stanley as the lead arranger and bookrunner. In addition, Barclays Bank, RBC Capital Markets, Bank of America, and JP Morgan served as joint lead arrangers and joint bookrunners.

The credit facility was arranged by Morgan Stanley as lead arranger and administrative agent, Barclays Bank and RBC Capital Markets as syndication agents, and The Bank of New York Mellon as documentation agent. Other lenders participating in the syndicate were Bank of America and JP Morgan.

About Virtus Investment Partners, Inc.
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company provides investment management products and services through its affiliated managers and select subadvisers, each with a distinct investment style, autonomous investment process, and individual brand. Virtus Investment Partners offers access to a variety of investment styles across multiple disciplines to meet a wide array of investor needs. Its affiliates include Ceredex Value Advisors, Duff & Phelps Investment Management, Kayne Anderson Rudnick Investment Management, Newfleet Asset Management, NFJ Investment Group, Seix Investment Advisors, Silvant Capital Management, Sustainable Growth Advisers, and Virtus ETF Solutions.

 

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SOURCE Virtus Investment Partners, Inc.

FAQ

What is the recent refinancing announcement by Virtus Investment Partners (VRTS)?

Virtus Investment Partners announced the completion of a $275 million senior secured term loan and a $175 million revolving credit facility to improve financial flexibility and lower capital costs.

How does the refinancing impact Virtus Investment Partners' debt maturity?

The refinancing extends the company's debt maturity profile, with the new term loan maturing in 2028.

What are the interest rates on the new loans for Virtus Investment Partners (VRTS)?

The new term loan and revolving credit facility bear interest at a rate of LIBOR plus 225 basis points, with no LIBOR floor.

What will the proceeds from the new financing be used for?

Proceeds will be used to repay an existing $194 million term loan and for general corporate purposes.