American Greetings reveals expected pricing on $600 million facility

By Sara Rosenberg

New York, June 13 - American Greetings Corp. outlined the anticipated pricing on its proposed $600 million senior secured credit facility (Ba2/BB-) that will be used to help fund its buyout by chief executive officer Zev Weiss and president and chief operating officer Jeffrey Weiss, according to a PRER14A filed with the Securities and Exchange Commission on Thursday.

The $400 million six-year term loan is expected to be priced at Libor plus 375 basis points with a 1.25% Libor floor, and the $200 million five-year revolver is expected to be priced at Libor plus 350 bps, the filing said.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., PNC Capital Markets LLC, KeyBank and Macquarie Capital (USA) Inc. are the lead banks on the deal.

Under the agreement, American Greetings will be acquired for $18.20 per share in cash. The transaction is valued at about $878 million.

American Greetings is a Cleveland-based greeting card company.

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