Harland Clarke extended term loan size estimated at $969 million

By Sara Rosenberg

New York, May 9 - Harland Clarke Holdings Corp.'s extended term loan size is estimated at $969 million, but the final amount is still to be determined, according to a market source.

The company was targeting the extension of $1 billion of its term loan by three years to June 2017, leaving $719 million of non-extended term loan debt.

With the extension, the company is offering a 30% paydown to extending term loan lenders from proceeds of a new $300 million senior secured notes offering.

Pricing on the extended term loan is Libor plus 525 basis points with no Libor floor, versus non-extended pricing of Libor plus 250 bps.

Amortization on the extended term loan is 10% per annum, compared to 1% per annum on the non-extended tranche.

The extended term loan has a springing maturity 90 days before the maturity of the company's senior notes.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Harland Clarke is a San Antonio-based provider of integrated payment, marketing and security services and retail products.

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