FTD upsizes term B and adds pricing step down, downsizes term A and revolver

By Sara Rosenberg

New York, July 8 - FTD Group Inc. upsized its six-year term loan B to $300 million from $200 million, downsized its five-year term loan A to $75 million from $175 million and downsized its five-year revolver to $50 million from $75 million, according to a market source.

Pricing on the term loan B was left unchanged at Libor plus 450 basis points, but a step down to Libor plus 425 bps was added effective when total leverage is at or below 2½ times, the source said.

The original issue discount on the term loan B remained at 98.

Pricing on the term loan A and the revolver is still set at Libor plus 350 bps, in line with initial talk.

Upfront fees on the revolver and the term loan A range from 50 bps to 100 bps depending on the commitment level.

As before, all tranches under the now $425 million credit facility, down from $450 million, carry a 3% Libor floor.

Recommitments from lenders are due by the close of business on Wednesday.

Financial covenants under the credit facility include a leverage ratio, a fixed-charge coverage ratio and a maximum capital expenditures requirement.

Wells Fargo is the lead arranger, bookrunner and administrative agent on the deal that will be used to help fund United Online Inc.'s acquisition of FTD for $7.34 in cash, 0.4087 of a share of United Online common stock and $3.31 principal amount of United Online 13% senior secured notes due 2013 per share.

Total and senior leverage at close will be 3.6 times.

The transaction is expected to be completed in mid-to-late September. Since it will be a while before the credit facility funds, term loan B lenders are being paid a 1% ticking fee.

FTD is a provider of floral related products and services. United Online is a Woodland Hills, Calif., provider of consumer internet and media services.

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