Resource Label sets first- and second-lien term loan price talk

By Sara Rosenberg

New York, June 23 – Resource Label Group (RLG Holdings LLC) came out with price talk on its $405 million seven-year first-lien term loan, $90 million delayed-draw first-lien term loan, $110 million eight-year second-lien term loan and $15 million delayed-draw second-lien term loan with its lender call on Wednesday, according to a market source.

Talk on the first-lien term loan debt (B2/B-) is Libor plus 425 basis points to 450 bps with a 0.75% Libor floor and an original issue discount of 99, and talk on the second-lien term loan debt (Caa2/CCC) is Libor plus 750 bps to 775 bps with a 0.75% Libor floor and a discount of 98.5, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Delayed-draw ticking fees are half the margin from days 46 to 90 and the full margin thereafter.

The company’s $680 million of credit facilities also include a $60 million revolver.

Credit Suisse Securities (USA) LLC, Jefferies LLC, BMO Capital Markets, Nomura and UBS Investment Bank are the lead arrangers on the deal.

Commitments are due at 5 p.m. ET on July 1.

Proceeds will be used to help fund the buyout of the company by Ares.

Resource Label Group is a Franklin, Tenn.-based provider of custom label design and printing.

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