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Resource Label tweaks first-lien term loan tranching, updates pricing
By Sara Rosenberg
New York, July 2 – Resource Label Group (RLG Holdings LLC) downsized its funded seven-year first-lien term loan to $395 million from $405 million and upsized its delayed-draw first-lien term loan to $100 million from $90 million, according to a market source.
Also, pricing on the first-lien term loan debt (B2/B-) firmed at Libor plus 425 basis points, the low end of the Libor plus 425 bps to 450 bps talk, a 25 bps step-down was added at 0.5x inside closing first-lien net leverage, and the original issue discount was tightened to 99.5 from 99, the source said.
The first-lien term loan debt still has a 0.75% Libor floor and 101 soft call protection for six months.
Pricing on the company’s $110 million eight-year second-lien term loan and $15 million delayed-draw second-lien term loan finalized at Libor plus 750 bps, the low end of the Libor plus 750 bps to 775 bps talk.
The second-lien term loan debt (Caa2/CCC) still has a 0.75% Libor floor, a discount of 98.5, and 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 delayed-draw second-lien term loan has been privately placed.
The company’s $680 million of credit facilities also include a $60 million revolver (B2/B-).
Credit Suisse Securities (USA) LLC, Jefferies LLC, BMO Capital Markets, Nomura and UBS Investment Bank are the lead arrangers on the deal.
Recommitments were scheduled to be due at 10 a.m. ET on Friday, the source added.
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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