Deluxe Entertainment ups term loan to $605 million, trims pricing

By Sara Rosenberg

New York, Feb. 24 - Deluxe Entertainment Services Group Inc. upsized its six-year first-lien term loan (B2/B) to $605 million from $570 million and reduced pricing to Libor plus 550 basis points from Libor plus 650 bps, according to a market source.

Also, the original issue discount on the term loan was tightened to 99½ from 99 and the 101 soft call protection was shortened to six months from one year, the source said.

The term loan still has a 1% Libor floor, amortization of 2.5% per annum and a maximum total leverage covenant.

The company's now $705 million credit facility, up from $670 million, also includes a $100 million five-year ABL revolver.

Recommitments were due at 5 p.m. ET on Monday, the source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

Proceeds will be used to refinance existing debt, and due to the term loan upsizing, to fund a dividend and for general corporate purposes.

Deluxe is a Shoreview, Minn.-based provider of digital asset creation, management and distribution services.

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