Monotype hikes pricing, ups discount on downsized $425 million loan

By Paul A. Harris

Portland, Ore., Oct. 9 – Monotype Imaging Holdings Inc. increased spread talk and cheapened price talk on a downsized $425 million seven-year first-lien term loan (B2/B-), according to a market source.

New pricing sees the spread widen to Libor plus 550 basis points from earlier talk of 525 bps. That spread talk, itself, increased from 500 bps.

The loan, which is downsized from $440 million, is offered at 95. Discounting was earlier decreased to 98 from 99.

The 101 soft call protection was extended to one year from six months.

There are also covenant changes.

Commitments are due at 4 p.m. ET on Thursday.

Deutsche Bank Securities Inc., Antares Capital, Macquarie Capital and BNP Paribas Securities Corp. are the bookrunners on the deal.

In conjunction with the downsizing of the term loan, the revolver size increased to $70 million from $50 million.

Proceeds will be used to help fund the buyout of the company by HGGC for $19.85 per share in cash, representing an aggregate equity value of about $825 million.

Monotype is a Woburn, Mass.-based provider of type related software solutions and technologies.

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