Digital Room talks $340 million term loan at Libor plus 500-525 bps

By Sara Rosenberg

New York, Dec. 2 – Digital Room launched on Thursday its $340 million first-lien term loan (B2) with price talk of Libor plus 500 basis points to 525 bps with a 0.5% Libor floor and an original issue discount of 99, according to a market source.

The first-lien term loan has 101 soft call protection for six months, the source said.

Commitments are due on Dec. 15.

The company’s $530 million of senior secured credit facilities also include a $50 million revolver (B2) and a $140 million privately placed second-lien term loan (Caa2).

UBS Investment Bank, BNP Paribas Securities Corp., Nomura and CBAM are the joint bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by Sycamore Partners.

Other funds for the transaction will come from equity, which is expected to be roughly 45% of the total capitalization.

Digital Room is a Sherman Oaks, Calif.-based provider of customized marketing solutions to small- and medium-sized businesses.

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