Harland Clarke launches extended term loan B-5, incremental term B-6

By Sara Rosenberg

New York, Feb. 7 – Harland Clarke Holdings Corp. launched on Tuesday a $760 million covenant-light first-lien term loan B-5 due December 2021 and a $325 million incremental covenant-light first-lien term loan B-6 due February 2022, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The term loan B-5 is talked at Libor plus 600 basis points with a 1% Libor floor and an original issue discount of 99.75, and the incremental term loan B-6 is talked at Libor plus 550 bps with a 1% Libor floor and a discount of 99.25 to 99.5, the source said.

Included in the term loan B-5 is 101 soft call protection through June and the term loan B-6 has 101 soft call protection through August.

The spread, floor and call protection on the term loan B-5 and the incremental term loan B-6 matches existing term loan B-5 and B-6 terms.

Expected term loan ratings are B1/BB-.

Proceeds will be used to extend an existing term loan B-5 from December 2019 and to refinance the company’s remaining term loan B-4 debt.

Commitments are due at 5 p.m. ET on Feb. 14, the source added.

Harland Clarke is a San Antonio-based provider of media delivery, payment solutions and marketing services.

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