American Greetings extends revolver, increases size to $400 million

By Angela McDaniels

Tacoma, Wash., Jan. 23 - American Greetings Corp. said it amended its revolving credit facility, increasing the size to $400 million from $350 million and extending the maturity to Jan. 18, 2017 from June 11, 2015.

The margin over Libor was reduced to 125 basis points to 225 bps, and the commitment fee was reduced to 25 bps to 40 bps, according to an 8-K filing with the Securities and Exchange Commission. Both depend on the company's leverage.

Before the change, the margin over Libor was 225 bps to 350 bps and the commitment fee was 37.5 bps to 50 bps.

The company said it also amended some restrictive covenants to give it additional operational flexibility, including in connection with the planned relocation of its headquarters, updating its information technology systems and incurring debt.

The size of the accordion feature is unchanged at $50 million.

The revolver had no borrowings when the amendment was completed on Wednesday.

PNC Capital Markets LLC acted as lead arranger and bookrunner. PNC Bank, NA is the administrative agent, Bank of America, NA and JPMorgan Chase Bank, NA are the syndication agents, and KeyBank NA and Bank of Nova Scotia are the documentation agents.

The greeting card company is based in Cleveland.

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