American Greetings launches $445 million term B at Libor plus 375 bps

By Sara Rosenberg

New York, March 19 – American Greetings Corp. launched on Monday its $445 million seven-year term loan B with price talk of Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $695 million of credit facilities (Ba3/B+) also include a $250 million revolver.

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.

Commitments are due at noon ET on March 29, the source added.

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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