Vestis Refinances $800M Debt, Extends Maturity

Vestis Completes Refinancing Transaction

  • Vestis (NYSE: VSTS) has successfully refinanced its $800 million 2-year term loan a-1 with an $800 million 7-year term loan b, maintaining net leverage neutrality and extending the debt maturity to 2031.
  • The new term loan b is priced at the secured overnight financing rate (SOFR) plus 225 basis points, issued with 0.25% original issue discount, and will adjust to SOFR plus 200 basis points after Vestis reaches 3.30x net leverage as defined in the credit agreement.
  • Chief Financial Officer Rick Dillon expressed satisfaction with the successful refinancing, emphasizing the company's commitment to de-leveraging and its confidence in the strength of its capital allocation strategy.
  • Vestis also has $691 million remaining on its existing term loan a-2 and an undrawn $300 million revolving credit facility, both maturing in 2028.
  • The refinancing transaction was led by Wells Fargo Securities, LLC.

About Vestis™ Vestis is a leading provider of uniform services and workplace supplies to a wide range of North American customers, offering a comprehensive service portfolio including uniform rental programs, floor mats, towels, linens, managed restroom services, first aid supplies, and specialty garment processing.

The company's full 8-K submission is available here. As a result of these announcements, the company's shares have moved 0.9% on the market, and are now trading at a price of $19.73. For more information, read the company's full 8-K submission here.

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