Virtus Investment Partners, which operates a multi-boutique asset management business, 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 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.

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."