American Greetings lifts term loan to $402 million, widens spread

By Sara Rosenberg

New York, Feb. 1 – American Greetings Corp. upsized its senior secured first-lien term loan to about $402 million from roughly $282 million and increased pricing to SOFR plus 600 basis points from talk in the range of SOFR plus 475 bps to 500 bps, according to a market source.

Also, the maturity date on the term loan was changed to April 6, 2028 from April 6, 2026, and a ticking fee was added of half the margin after 45 days, the source said.

The term loan still has a 1% floor, an original issue discount of 97, no CSA, 101 soft call protection for six months, amortization of 1% per annum and a 91-day springing maturity ahead of the company’s senior notes due April 15, 2025.

Barclays is the agent on the deal.

Recommitments were scheduled to be due at 1 p.m. ET on Wednesday, the source added.

Proceeds will be used to amend and extend an existing roughly $282 million senior secured first-lien term loan due April 2024 that is priced at Libor plus 450 bps with a 1% floor and, due to the upsizing, to refinance $120 million of senior notes due April 2025.

American Greetings is a Cleveland-based celebration solutions provider offering greeting cards, gift packaging, party goods, gifting products and digital offerings.

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