American Greetings finalizes talk on $800 million term loan at SOFR plus 575 bps, 98 OID

By Paul A. Harris

Portland, Ore., April 23 – American Greetings Corp. finalized talk on its $800 million 5˝-year senior secured term loan B on Tuesday, according to a market source.

The loan is set to come with a 575 basis points spread to SOFR and original issue discount of 98, at the tight end of the 575 bps to 600 bps spread talk.

The price comes at the cheap end of the 98 to 98.5 price talk.

The deal has a 0% floor and 101 soft call protection for six months.

Commitments were due on Tuesday.

Barclays is the lead on the deal and the administrative agent.

Proceeds will be used to refinance an existing first-lien term loan due 2028 and any outstanding revolving credit facility borrowings, to fund a distribution to shareholders and to add cash to the balance sheet.

Concurrently with this transaction, the company’s 2025 notes will be repaid.

American Greetings is a Cleveland-based celebration solutions provider offering greeting cards, gift packaging, party goods, gifting products and digital offerings.

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