Amscan ups pricing on $675 million term loan to Libor plus 525 bps

By Sara Rosenberg

New York, Nov. 23 - Amscan Holdings Inc. firmed changes to its $675 million seven-year senior secured covenant-light term loan (B2/B), setting pricing at Libor plus 525 basis points, up from talk of Libor plus 450 bps to 475 bps, and adding 101 soft call protection for one year, according to a market source.

The 1.5% Libor floor and original issue discount of 99 were left unchanged.

The term loan includes a springing maturity 91 days inside the company's subordinate notes due May 2014.

Allocations are expected to go out next week.

Credit Suisse and Goldman Sachs are the joint lead arrangers on the deal, and they are bookrunners with Wells Fargo, Deutsche Bank and Barclays.

Proceeds will be used to refinance an existing senior secured term loan due in 2013 and to fund a cash dividend of about $310 million.

In connection with the term loan, the company is amending its existing senior secured revolving credit facility to allow for the new debt.

Amscan is an Elmsford, N.Y.-based designer, manufacturer and distributor of decorated party goods and party accessories.

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