Topps lifts spread on $200 million term loan to Libor plus 400 bps

By Sara Rosenberg

New York, July 8 – Topps Co. Inc. increased pricing on its $200 million seven-year covenant-lite first-lien term loan (B1/B) to Libor plus 400 basis points from talk in the range of Libor plus 350 bps to 375 bps, according to a market source.

Also, incremental debt incurrence was revised to 3.5x from 3.75x, and MFN now applies to free & clear incremental amount, ratio based incremental amount and pari passu term loans under incremental equivalent debt, ratio debt and acquisition debt, the source said.

In addition, J Crew protection is included prohibiting moving material intellectual property and/or materials business segment to an unrestricted subsidiary, and the company is now required to hold quarterly lender calls.

The term loan still has a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Deutsche Bank Securities Inc. is the bookrunner on the deal.

Recommitments were scheduled to be due at 4 p.m. ET on Thursday, the source added.

Proceeds will be used to refinance existing credit facilities.

Topps is a sports and entertainment company with a portfolio of physical trading cards, interactive apps, gifting/payment solutions and confectionary products.

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