Day International to launch $187 million loan Thursday

By Sara Rosenberg

New York, Aug. 12 - Day International Group Inc. is scheduled to hold a bank meeting for a new $187 million senior secured credit facility (B1/B) on Thursday. Lehman and Bank One are the co-lead arrangers and National City is the documentation agent, according to a company spokesman.

The facility consists of a $30 million six-year term loan A, a $20 million five-year revolver, a $105 million six-year term loan B and a $32 million five-year delayed draw term loan. Pricing on the term loan A and the revolver is expected to be around Libor plus 350 basis points, and pricing on the term loan B and the delayed draw term loan is expected to be around Libor plus 400 basis points, the source said.

Security is a perfected first-priority interest in all of the company's tangible and intangible assets.

Proceeds will be used to repurchase the company's $100 million 11 1/8% senior unsecured notes due 2005, to repay debt under the existing credit facility and to fund a potential acquisition.

Although the bonds and the credit facility would have needed to be refinanced eventually the company opted to bring the deal to market at the current time due to favorable market conditions, according to the company spokesman. "Interest rates are about as low as they're going to get," he added.

Day International is a Dayton, Ohio marketer of engineered, consumable products used in offset printing, flexographic printing, textile manufacturing and corrugated paper converting.

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