American Greetings gets $350 million revolver, terminates term loan

By Sara Rosenberg

New York, June 16 - American Greeting Corp. closed on a $350 million amended and restated revolving credit facility due June 11, 2015, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

In addition, the company said that it repaid its $99 million term loan due April 4, 2013 in full using cash on hand.

PNC Bank acted as the lead arranger, bookrunner and administrative agent on the new revolver that was completed on June 11, with Bank of America and JPMorgan Chase the co-syndication agents, and KeyBank and the Bank of Nova Scotia the co-documentation agents.

Pricing on the revolver is initially Libor plus 250 basis points with a 50 bps commitment fee. The spread can range from Libor plus 225 bps to 350 bps, and the commitment fee can range from 37.5 bps to 50 bps, based on leverage.

Financial covenants include a maximum leverage ratio of 3.00 to 1 and a minimum interest coverage ratio of 3.00 to 1.

There is a $50 million accordion feature.

The facility replaces the company's previous $350 million revolver that was set to mature on April 4, 2011 and will be used for working capital and other general corporate purposes.

American Greetings is a Cleveland-based manufacturer and retailer of social expression products.

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