Herff Jones cuts term B to $525 million, ups revolver to $200 million

By Sara Rosenberg

New York, June 20 - Herff Jones downsized its term loan B to $525 million from $550 million and upsized its revolver to $200 million from $150 million, according to a market source.

In addition, pricing on the term loan was increased to Libor plus 450 basis points from talk of Libor plus 350 bps to 400 bps, the source said.

The term loan still has a 1% Libor floor and an original issue discount of 99.

Included in the term loan B is 101 soft call protection for one year.

Pricing on the revolver is Libor plus 325 bps.

Covenants in the facility are total leverage and interest coverage ratios.

Allocations are expected to go out on Monday, the source added.

Jefferies Finance LLC, PNC Capital Markets LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC are the lead banks on the now $725 million credit facility (B2/BB-), up from $700 million.

Proceeds will be used to fund the acquisition of BSN Sports and refinance existing debt.

Herff Jones is an Indianapolis-based manufacturer and publisher of educational products, recognition awards and graduation-related items. BSN Sports is a Dallas-based distributor of team sports apparel and equipment.

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