Herff Jones now expected to launch $735 million credit facility in two to three weeks

By Sara Rosenberg

New York, Sept. 15 - Herff Jones has decided to cancel the previously scheduled Tuesday bank meeting for its proposed $735 million senior secured credit facility (Ba3/BB+) and is now looking to launch the deal in about two to three weeks, according to a market source.

The source said that the delay of the launch was most likely a result of the news that Bank of America is purchasing Merrill Lynch and that Lehman Brothers filed for bankruptcy, as well as the hurricane.

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 $210 million five-year term loan A talked at Libor plus 325 bps and a $425 million seven-year term loan B talked in the Libor plus 350 bps to 375 bps area.

All tranches have a 3% Libor floor.

The revolver and the term loan A were already launched to commercial banks during the second week of August.

Originally, 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 the amount of pro rata commitments already received, the banks decided to move some funds into the B loan prior to retail launch.

Term loan A and term loan B sizes are still a bit fluid.

Proceeds will be used to help fund the acquisition of American Achievement Group Holding Corp., an Austin, Texas-based provider of commemorative jewelry, class rings, yearbooks, letter jackets and other jewelry, from Fenway Partners.

Herff Jones is an Indianapolis-based manufacturer and publisher of educational products, recognition awards and graduation-related items.

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