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

By Paul A. Harris

Portland, Ore., April 24 – American Greetings Corp. priced its $800 million 5˝-year senior secured term loan B at SOFR plus 575 basis points with no floor and an original issue discount of 98, and the deal allocated on Wednesday, according to a market source.

The spread came at the tight end of the of the 575 bps to 600 bps spread talk.

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

The deal has 101 soft call protection for six months.

It is expected to close on April 30.

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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