Shutterfly increases term loan amount to $1.1 billion

By Sara Rosenberg

New York, June 30 – Shutterfly LLC lifted its senior secured term loan (B2/B-) due Sept. 25, 2026 to $1.105 billion from $1.023 billion, according to a market source.

Pricing on the term loan remained at Libor plus 500 basis points with a 0.75% Libor floor and an original issue discount of 99.5.

The term loan still has 101 soft call protection for one year and amortization of 1% per annum.

Of the total term loan amount, $215 million is delayed-draw and includes a ticking fee of half the spread from days 46 to 75 and the full spread thereafter.

Barclays is the left bookrunner and administrative agent on the deal.

Commitments continued to be due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to fund the acquisition of Spoonflower, a Durham, N.C.-based marketplace connecting makers and consumers with artists, for about $225 million and to refinance existing debt. The additional proceeds from the upsizing will repay a Spoonflower acquisition seller note and pay related fees and expenses.

The delayed-draw portion is for the funds needed to close the Spoonflower acquisition and upon closing/funding the delayed-draw will merge into the term loan B creating one tranche.

The deal will allocate and trade as a strip prior to the Spoonflower closing.

Closing is expected in the third quarter, subject to regulatory approvals and customary conditions.

Apollo Global Management LLC is the sponsor.

Shutterfly is a Redwood City, Calif.-based manufacturer and seller of customizable photo-based products and services.

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