American Greetings shifts $50 million between term loan and revolver

By Sara Rosenberg

New York, June 17 - American Greetings Corp. downsized its term loan to $350 million from $400 million and upsized its revolver to $250 million from $200 million, according to a market source.

Pricing on the term loan is Libor plus 325 basis points with a 0.75% Libor floor and an original issue discount of 991/2, and pricing on the revolver is Libor plus 300 bps with an upfront fee that ranges from 20 bps to 50 bps, the source said.

Allocations are expected to go out on Tuesday, the source added.

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 $600 million senior secured credit facility (Ba2/BB-).

Proceeds will be used to help fund the buyout of the company by chief executive officer Zev Weiss and president and chief operating officer Jeffrey Weiss 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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