American Greetings to launch $695 million credit facilities on Monday

By Sara Rosenberg

New York, March 16 – American Greetings Corp. is scheduled to hold a bank meeting at 2 p.m. ET on Monday to launch $695 million of credit facilities, according to a market source.

Barclays, Deutsche Bank Securities Inc., Citizens Bank, ING Capital LLC, Bank of America Merrill Lynch, HSBC Bank USA, Sumitomo Mitsui Financial Group, KeyBanc Capital Markets and CIBC are the bookrunners on the deal.

The facilities consist of a $250 million revolver and a $445 million seven-year term loan B, the source said.

Proceeds will be used to help fund the acquisition by Clayton, Dubilier & Rice of a 60% ownership stake in the company.

Other funds for the transaction will come from $325 million of new senior unsecured notes.

The Weiss Family will retain a 40% stake in the business.

American Greetings is a Cleveland-based designer, manufacturer and distributor of greeting cards, gift packaging, party goods and stationery products.

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