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Harland Clarke ups spread on extended term loan to Libor plus 425 bps
By Sara Rosenberg
New York, May 20 - Harland Clarke Holdings Corp. raised pricing on its proposed extended senior secured term loan due June 2017 to Libor plus 425 basis points from Libor plus 375 bps, according to a market source.
By comparison, the company's non-extended senior secured term loan due June 30, 2014 is priced at Libor plus 250 bps.
As before, the extended term loan provides for a springing maturity 90 days before the company's senior notes' May 2015 maturity.
The company has $1.729 billion of term loan debt outstanding.
Also as part of the changes, mandatory amortization for the deal was increased to $60 million, with 100% of the increase applying only to the extended tranche.
Additionally, the company removed its request to refresh the $25 million general restricted payments basket and increase the annual restricted payments basket to $25 million from $20 million.
Unchanged is the company's request to gain permission for future extensions of revolver commitments. The existing $100 million revolver due June 2013 is priced at Libor plus 250 bps.
Furthermore, the amendment would still add incremental term loan capacity to be used to repay non-extended term loan borrowings, subject to 50 bps Most Favored Nation language, permit the incurrence of second-lien or unsecured debt to repay term loans and allow for debt buybacks through tender offers.
Consents towards the revised proposal are due on Monday.
Lenders are still being offered a 10 bps amendment fee.
Credit Suisse Securities (USA) LLC is the left lead bank on the amend and extend transaction.
Harland Clarke is a San Antonio, Texas-based provider of integrated payment, marketing and security services and retail products.
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