1021-00001
· Verimark Hospitality Group · Syndication
syndication-allocation-summary.xlsx
DOCUMENT
Finance & Banking
[sheet: Allocation Summary]
Lender #
SYNDICATION ALLOCATION SUMMARY
VHG $700,000,000 Senior Secured Term Loan B
| Allocation Date: June 30, 2022 | Expected Closing: July 21, 2022 | ||||||||||||||
| 1 | Crescent Harbor Bank, National Association | Crescent Harbor / CHB | National Banking Association | OCC-chartered; New York | 50000000 | 7.14% | 0.25% | 125000 | 1.00% | 49500000 | Confirmed | 2022-06-30 | N/A — Administrative Agent | N/A | Administrative Agent, Collateral Agent, Lead Arranger, and Bookrunner; retained $50M on own book |
| 2 | Ridgeline Capital Partners, LP | Ridgeline | Limited Partnership (CLO fund) | Delaware | 125000000 | 17.86% | 0.25% | 312500 | 1.00% | 123750000 | Confirmed | 2022-06-30 | Yes | 2022-07-15 | CLO fund; largest syndicate commitment |
| 3 | Beacon Atlantic Credit Fund III | Beacon Atlantic | Fund (LP) — Credit fund | Cayman Islands | 100000000 | 14.29% | 0.25% | 250000 | 1.00% | 99000000 | Confirmed | 2022-06-30 | Yes | 2022-07-14 | Credit fund |
| 4 | Tidewater Institutional Investors, Inc. | Tidewater | Corporation — Insurance company investment arm | Connecticut | 75000000 | 10.71% | 0.25% | 187500 | 1.00% | 74250000 | Confirmed | 2022-06-30 | Yes | 2022-07-15 | Insurance company investment arm |
| 5 | Ironbridge Loan Management LLC | Ironbridge | LLC — CLO manager | Delaware | 100000000 | 14.29% | 0.25% | 250000 | 1.00% | 99000000 | Confirmed | 2022-06-30 | Yes | 2022-07-13 | CLO manager |
| 6 | Northway Savings Bank | Northway | State-chartered bank | Massachusetts | 75000000 | 10.71% | 0.25% | 187500 | 1.00% | 74250000 | Confirmed | 2022-06-30 | Yes | 2022-07-14 | Regional bank |
| 7 | Copperleaf Asset Management, LP | Copperleaf | Limited Partnership — Credit hedge fund | Delaware | 100000000 | 14.29% | 0.25% | 250000 | 1.00% | 99000000 | Confirmed | 2022-06-30 | Yes | 2022-07-15 | Credit hedge fund |
| 8 | Harborview Mutual Life Insurance Company | Harborview Life | Mutual insurance company | New York | 75000000 | 10.71% | 0.25% | 187500 | 1.00% | 74250000 | Confirmed | 2022-06-30 | Yes | 2022-07-14 | Life insurer |
| TOTAL (8 Lenders) | 700000000 | 100.00% | 1750000 | 1.00% | 693000000 | All Confirmed | 7 of 7 Executed (excl. Agent) | Facility fully committed and confirmed |
[sheet: Lender Contact Details]
| Lender # | Lender Full Legal Name | Principal Contact Name | Principal Contact Title | Phone | Address | Wire Instructions Reference | Notes | |
| 1 | Crescent Harbor Bank, National Association | Theodore "Ted" Marchetti (Lead Banker); Anika Holm (Syndication Contact) | Managing Director, Leveraged Finance; Director, Loan Syndications | (212) 555-0101; (212) 555-0102 | tmarchetti@crescentharbor.com; aholm@crescentharbor.com | 600 Lexington Avenue, 34th Floor, New York, NY 10022 | Per separate wire instruction letter | Administrative Agent and Lead Arranger |
| 2 | Ridgeline Capital Partners, LP | Jerome Alston | Portfolio Manager | (212) 555-0201 | jalston@ridgelinecap.com | Per lender notice on file | Per separate wire instruction letter | CLO fund; $125M commitment |
| 3 | Beacon Atlantic Credit Fund III | Lina Marchenko | Senior Analyst | (212) 555-0301 | lmarchenko@beaconatlanticfunds.com | Per lender notice on file | Per separate wire instruction letter | Credit fund; $100M commitment |
| 4 | Tidewater Institutional Investors, Inc. | Douglas Nettles | Head of Private Credit | (860) 555-0401 | dnettles@tidewaterinvest.com | Per lender notice on file | Per separate wire instruction letter | Insurance company investment arm; $75M commitment |
| 5 | Ironbridge Loan Management LLC | Catherine Volpe | Managing Director | (212) 555-0501 | cvolpe@ironbridgelm.com | Per lender notice on file | Per separate wire instruction letter | CLO manager; $100M commitment |
| 6 | Northway Savings Bank | Brian Kowalski | SVP, Commercial Lending | (617) 555-0601 | bkowalski@northwaysavings.com | Per lender notice on file | Per separate wire instruction letter | Regional bank; $75M commitment |
| 7 | Copperleaf Asset Management, LP | Samara Patel | Partner | (212) 555-0701 | spatel@copperleafam.com | Per lender notice on file | Per separate wire instruction letter | Credit hedge fund; $100M commitment |
| 8 | Harborview Mutual Life Insurance Company | Franklin Yee | Chief Investment Officer | (212) 555-0801 | fyee@harborviewlife.com | Per lender notice on file | Per separate wire instruction letter | Life insurer; $75M commitment |
[sheet: Facility Summary]
| Parameter | Detail |
| Transaction | Senior Secured Term Loan B Refinancing |
| Borrower | Verimark Hospitality Group Inc. (NYSE: VMRK) |
| Borrower Headquarters | 8200 West Palmetto Park Road, Suite 1500, Boca Raton, FL 33433 |
| Borrower EIN | 82-3741956 |
| Administrative Agent / Lead Arranger / Bookrunner | Crescent Harbor Bank, National Association |
| Crescent Harbor Internal Loan Number | CHB-LF-2022-07814 |
| CUSIP (New TLB) | 92347LAB8 |
| Agent's Counsel | Whitfield Gage & Partridge LLP (Harrison Whitfield III / Megan Yeung) |
| Borrower's Counsel | Calderwood & Harkness LLP (Ian Blackwood / Sophie Tremblay) |
| Borrower's Financial Advisor | Meridian Strauss Advisory LLC (Elise Cavanaugh) |
| Facility Size | $700,000,000 |
| OID | 1.00% ($7,000,000) |
| Net Funding Amount | $693,000,000 |
| Applicable Margin | Adjusted Term SOFR + 375 bps |
| SOFR Floor | 0.50% |
| SOFR Credit Spread Adjustments | 1-month: +0.10%; 3-month: +0.15%; 6-month: +0.25% |
| Illustrative All-In Rate (July 21, 2022) | 1-mo Term SOFR 2.29% + 0.10% CSA + 3.75% = 6.14% |
| Maturity Date | July 21, 2029 (7-year tenor) |
| Amortization | 1.00% per annum ($1,750,000 per quarter) |
| Balloon at Maturity | $651,000,000 |
| MFN Threshold | 50 basis points |
| MFN Sunset Date | January 21, 2024 (18 months post-closing) |
| Repricing Protection (Soft Call) | 1.00% premium for 6 months post-closing (through January 21, 2023) |
| Maximum Total Net Leverage Ratio | 4.5x (springing) |
| Pro Forma Net Leverage at Closing | 2.52x |
| Arrangement Fee | 0.50% ($3,500,000) |
| Upfront Fee (Syndicate) | 0.25% of each lender's commitment (embedded in OID) |
| Annual Administrative Agent Fee | $150,000 |
| Existing Facility Being Refinanced | $625,000,000 TLB (Greystone Federal Credit Corp. as agent; CUSIP 92347LAA0) |
| Total Payoff Amount | ~$627,916,667 |
| Credit Ratings | BB- / B+ (Kellaway Ratings Group); Ba3 / B1 (Pinnacle Credit Services) |
| Syndication Launch Date | June 6, 2022 |
| Lender Presentations | June 13–17, 2022 |
| Allocation Date | June 30, 2022 |
| Expected Closing Date | July 21, 2022 (simultaneous sign-and-close) |
| Number of Lenders | 8 |
| Total Commitments | $700,000,000 |
| Collateral | First-priority lien on substantially all assets of VHG and Guarantors; pari passu with $400M RCF |
| Guarantors | Verimark Resort Properties LLC; VHG Management Services Inc.; Verimark Convention Holdings LLC; Palmetto Beachfront Hotels LLC; Cascadia Hospitality Corp. |
| Governing Law | New York |
[sheet: Commitment Confirmation Tracker]
| Lender # | Lender Short Name | Commitment Amount ($) | Allocation Notification Sent | Commitment Confirmation Received | Commitment Confirmation Status | Accession Agreement — Draft Sent | Accession Agreement — Comments Received | Accession Agreement — Execution Date | Accession Agreement Status | KYC/AML Clearance | Note Request (Yes/No) | Responsible Attorney | Notes |
| 1 | Crescent Harbor | 50000000 | N/A | N/A | N/A — Agent / Retained Amount | N/A | N/A | N/A | N/A — Party to Credit Agreement as Agent | Cleared | No | Sophie Tremblay | Retained $50M on own book; party to Credit Agreement in capacity as Administrative Agent |
| 2 | Ridgeline | 125000000 | 2022-06-30 | 2022-06-30 | Confirmed | 2022-07-05 | 2022-07-11 | 2022-07-15 | Executed | Cleared | Yes | Daniel Obi | CLO fund; largest syndicate commitment |
| 3 | Beacon Atlantic | 100000000 | 2022-06-30 | 2022-06-30 | Confirmed | 2022-07-05 | 2022-07-10 | 2022-07-14 | Executed | Cleared | No | Daniel Obi | Cayman Islands fund; confirmed via email |
| 4 | Tidewater | 75000000 | 2022-06-30 | 2022-06-30 | Confirmed | 2022-07-05 | 2022-07-12 | 2022-07-15 | Executed | Cleared | Yes | Daniel Obi | Insurance company investment arm |
| 5 | Ironbridge | 100000000 | 2022-06-30 | 2022-06-30 | Confirmed | 2022-07-05 | 2022-07-08 | 2022-07-13 | Executed | Cleared | No | Sophie Tremblay | CLO manager |
| 6 | Northway | 75000000 | 2022-06-30 | 2022-06-30 | Confirmed | 2022-07-05 | 2022-07-11 | 2022-07-14 | Executed | Cleared | Yes | Daniel Obi | Regional bank; Massachusetts state-chartered |
| 7 | Copperleaf | 100000000 | 2022-06-30 | 2022-06-30 | Confirmed | 2022-07-05 | 2022-07-12 | 2022-07-15 | Executed | Cleared | No | Sophie Tremblay | Credit hedge fund |
| 8 | Harborview Life | 75000000 | 2022-06-30 | 2022-06-30 | Confirmed | 2022-07-05 | 2022-07-10 | 2022-07-14 | Executed | Cleared | Yes | Daniel Obi | Life insurer; requested promissory note |
| TOTAL / SUMMARY | 700000000 | All sent 2022-06-30 | All received 2022-06-30 | 8/8 Confirmed (incl. Agent retained) | All drafts sent 2022-07-05 | All comments received by 2022-07-12 | All executed by 2022-07-15 | 7/7 Executed (excl. Agent) | All 8 Cleared | 4 Note Requests | All lenders closing-ready ahead of July 21, 2022 target |