ImageFirst adds $20 million delayed-draw loan, revises OID to 97.5

By Sara Rosenberg

New York, April 27 – ImageFirst Holdings LLC added a $20 million delayed-draw incremental covenant-lite term loan to its transaction, according to a market source.

Additionally, the original issue discount on the company’s non-fungible $100 million incremental covenant-lite term loan due April 27, 2028 was tightened to 97.5 from 97, and the delayed-draw term loan is being issued at the same discount as the funded term loan, the source said.

Pricing on the term loan debt is SOFR+CSA plus 500 basis points with a 0.75% floor.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan debt has 101 soft call protection for six months.

Earlier in syndication, the spread on the incremental term loan was lowered from SOFR plus 550 bps.

Antares Capital is the lead on the deal.

Proceeds will be used for general corporate purposes and to fund acquisitions under letters of intent.

Closing is expected on Friday.

With this transaction, pricing on the company’s existing $264.1 million first-lien term loan will be repriced to SOFR+CSA plus 475 bps with a 0.75% floor from Libor plus 450 bps with a 0.75% floor, revised from an initial proposal of SOFR+CSA plus 500 bps.

The change to SOFR will occur after the existing Libor contract expires in a week or two.

Existing lenders waived MFN, the source added.

Lenders were offered a 50 bps amendment fee.

Calera Capital is the sponsor.

ImageFirst is a King of Prussia, Pa.-based provider of linen, laundry, and safety and hygiene services specializing in the health care industry.

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