Herff Jones to launch $735 million credit facility on Tuesday

By Sara Rosenberg

New York, Sept. 10 - Herff Jones is scheduled to hold a retail bank meeting on Tuesday to launch its proposed $735 million senior secured credit facility (Ba3), according to a market source.

Bank of America and Wachovia are the lead banks on the deal, with Bank of America the left lead.

The facility consists of a $100 million five-year revolver talked at Libor plus 325 basis points, a $335 million five-year term loan A talked at Libor plus 325 bps and a $300 million seven-year term loan B with price talk not disclosed as of yet, the source said.

Sizes on the term loan A and the term loan B are still a little fluid, the source remarked.

All tranches under the facility have a 3% Libor floor.

The revolver and the term loan A were already launched to commercial banks with a meeting during the second week of August, so next week's launch is really just for the term loan B.

Proceeds from the facility will be used to help fund the acquisition of American Achievement Group Holding Corp. from Fenway Partners.

The transaction is subject to regulatory approvals and customary closing conditions.

Herff Jones is an Indianapolis-based manufacturer and publisher of educational products, recognition awards and graduation-related items sold to schools. American Achievement is an Austin, Texas-based provider of products that mark the special moments of people's lives, such as commemorative jewelry, class rings, yearbooks, letter jackets and other jewelry, including military and family products.

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