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DG FastChannel $490 million term B spread set at Libor plus 450 bps
By Sara Rosenberg
New York, July 21 - DG FastChannel Inc. firmed pricing on its $490 million seven-year term loan B at Libor plus 450 basis points, the wide end of the Libor plus 425 bps to 450 bps talk, according to a market source.
Also, the original issue discount was set at 99 versus initial talk of 99 to 991/2, the source said.
The 1.25% Libor floor and 101 soft call protection for one year were left unchanged.
The company's $640 million credit facility (B1/BB-) also provides for an up to $150 million five-year revolver.
J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the lead banks on the deal.
Financial covenants include a total leverage ratio and a minimum fixed-charge coverage ratio.
Proceeds will be used to help fund the acquisition of MediaMind Technologies Inc. for $22 per share in cash through a tender offer, which commenced on June 28 and expires on July 22.
The total transaction value is $517 million equity value or $414 million enterprise value, taking into account over $100 million in cash on MediaMind's balance sheet.
Closing is expected in the third quarter, subject to the successful completion of the tender offer, regulatory approval and customary conditions.
On June 24, the Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in connection with the tender offer.
DG FastChannel is an Irving, Texas-based provider of digital media services to the advertising, entertainment and broadcast industries. MediaMind is a New York-based provider of integrated digital advertising services.
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