Columbia House to hold second bank meeting Wednesday for new $175 million loan

By Sara Rosenberg

New York, May 13 - Columbia House Co. is scheduled to hold a second bank meeting Wednesday in New York for its new $175 million credit facility. The first bank meeting was held Monday in Los Angeles for West Coast investors, a syndicate source said. UBS Warburg and Bank of America are co-leads on the deal.

The loan, which is secured by all assets, consists of a $30 million five-year revolver with an interest rate of Libor plus 450 basis points and a $145 million five-year term with an interest rate of Libor plus 450 basis points.

Proceeds combined with sponsor-contributed equity will be used to fund a leveraged buyout by the Blackstone Group.

Columbia House is a New York City-based direct marketer of music and videos.

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