American Greetings lifts term loan B to $470 million, flexes higher

By Sara Rosenberg

New York, April 5 – American Greetings Corp. upsized its term loan B to $470 million from $445 million and increased pricing to Libor plus 450 basis points from Libor plus 375 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 98 from 99.5, the 101 soft call protection was extended to one year from six months and the maturity was shortened to six years from seven years, the source said.

The term loan still has a 1% Libor floor and 50 bps MFN for life.

The company’s now $720 million of credit facilities, up from $695 million, 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.

Final commitments were scheduled to be due at 5 p.m. ET on Thursday, 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 $300 million of new senior notes, downsized from $325 million with the term loan upsizing.

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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