Herff Jones $425 million term loan B talked at Libor plus 350 bps to 375 bps

By Sara Rosenberg

New York, Sept. 12 - Herff Jones is talking its $425 million seven-year term loan B at Libor plus 350 basis points to 375 bps ahead of the Tuesday bank meeting that will launch the deal into syndication, according to a market source.

As was previously reported, the company's $100 million five-year revolver and $210 million five-year term loan A are both being talked at Libor plus 325 bps.

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 the Tuesday launch is really just for the term loan B.

When the deal was announced, it was thought that the term loan B would be sized at $300 million and the term loan A would be sized at $335 million, but based on pro rata commitments, the banks decided to move some funds into the B loan prior to launch. These tranches sizes, however, are not final yet, the source said.

Bank of America and Wachovia are the lead banks on the $735 million senior secured deal (Ba3/BB+), with Bank of America the left lead.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.