Danka $145 million credit facility expected to launch next week

By Sara Rosenberg

New York, July 16 - Danka Business Systems plc's $145 million senior secured credit facility is expected to launch with a bank meeting during the week of July 23, with a specific date to be determined, according to a market source.

General Electric Capital Corp. is the lead bank on the deal, which has already closed and funded, but has not yet been syndicated.

The facility consists of a $40 million revolver due June 18, 2012 expected at Libor plus 325 basis points, a $60 million first-lien term loan due June 18, 2012 expected at Libor plus 325 bps and a $45 million second-lien term loan due Dec. 18, 2012 expected at Libor plus 610 bps.

The second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Proceeds from the facility, along with proceeds from the company's previously completed sale of its European operations, were used to significantly reduce and refinance existing debt.

Danka is a St. Petersburg, Fla., provider of enterprise imaging systems and services.

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