Fotolia to launch restructured $210 million term loan on Thursday

By Sara Rosenberg

New York, Sept. 18 - Fotolia LLC will hold a call on Thursday to launch a $210 million seven-year term loan that is talked at Libor plus 500 basis points with a 1.25% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year, according to a market source.

This term loan is a restructuring of the company's deal that was launched (but never closed) this summer as a $200 million seven-year first-lien term loan (Ba3/B) and $100 million euro equivalent 71/2-year second-lien term loan (Caa1/CCC+).

The original deal had price talk on the first-lien term loan of Libor plus 400 bps to 425 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, and price talk on the second-lien term loan of Euribor plus 800 bps to 825 bps with a 1.25% floor, a discount of 99 and call protection of 103 in year one, 102 in year two and 101 in year three.

Goldman Sachs Bank USA, HSBC Securities (USA) Inc., GE Capital Markets and KKR Capital Markets are leading the deal.

Proceeds will be used to refinance existing debt and fund a dividend, which will be smaller than the one the company was targeting under its original deal plans.

Fotolia is a New York-based provider of royalty-free images, vectors, illustrations and video footage clips.

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