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Published on 6/2/2016 in the Prospect News Bank Loan Daily and Prospect News High Yield Daily.

Moody’s rates Harland Clarke loan B1

Moody's Investors Service said it assigned a B1 rating to Harland Clarke Holdings Corp.'s proposed $800 million term loan B-5 due December 2019.

The corporate family rating is unchanged at B2. The existing term loan B-2, B-3, and B-4 and senior secured notes due in 2018 and 2020 remain at B1 and the senior unsecured notes due 2021 remain at Caa1.

The outlook is stable.

Proceeds are expected to be used to repay the $452 million term loan B-2 due June 2017 and $310 million of the $698 million term loan B-3 due May 2018 in addition to OID and transaction fees.

The agency expects the company will look to refinance the balance of the term loan B-3 and the $270 million senior secured notes due August 2018 going forward.

The maturity date of the term loan B-5 is Dec. 31, 2019, but will be June 1, 2018 if the 2018 secured notes are outstanding as of that date. The term loan B-5 will also have a required 10% annual amortization payment. The existing rating of the term loan B-2 will be withdrawn upon repayment.


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