Victory Capital Fixes Interest Rate on $450 Million of Remaining Term Loan Balance
31 März 2020 - 1:45PM
Business Wire
Victory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital”
or the “Company”) today announced that it has executed a
floating-to-fixed interest rate swap transaction (the “Swap”) to
effectively fix the interest rate at 3.465% on $450 million of its
outstanding Term Loan (“Term Loan”).
“We continue to generate strong free cash flow due to our highly
variable cost structure, despite recent market declines,” said
David Brown, Chairman and CEO. “Opportunistically locking in this
low rate, on nearly half of our total debt, reduces risk and
further enhances our free cash flow profile.”
As previously announced, the Term Loan was repriced in January
2020 to LIBOR plus 2.5%, reducing the interest rate spread by 75
basis points, from LIBOR plus 3.25%. The Swap effectively fixes the
interest rate, on 49% of the current $914 million outstanding
balance, through the Term Loan’s maturity in 2026. Due to
voluntarily accelerating prepayments, all principal payment
commitments have been satisfied through maturity. There were no
changes made to any terms and the Company’s committed $100 million
revolver remains undrawn.
About Victory Capital
Victory Capital is a diversified global asset management firm
with $142.4 billion in assets under management as of February 29,
2020. 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 nine 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, rules-based and
active ETFs, multi-asset class strategies, custom-designed
solutions and a 529 College Savings Plan.
For more information, please visit www.vcm.com or follow us.
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version on businesswire.com: https://www.businesswire.com/news/home/20200331005113/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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