Harland Clarke readies launch of $1.68 billion term loan for Tuesday

By Sara Rosenberg

New York, Oct. 20 – Harland Clarke Holdings Corp. is scheduled to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $1.68 billion six-year covenant-light first-lien term loan, according to a market source.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc., Deutsche Bank Securities Inc., Jefferies LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the arrangers on the deal.

Co-managers are Fifth Third, Regions and Eagle Hill.

Price talk on the term loan is Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 99.5, the source said.

The term loan has 101 soft call protection for six months.

Expected term loan ratings are B1/BB-.

Proceeds will be used to refinance a portion of the company’s term loan B-5 and term loan B-6.

Commitments are due at 5 p.m. ET on Oct. 30, the source added.

Harland Clarke is a San Antonio-based provider of media delivery, payment solutions and marketing services.

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