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Quad/Graphics cuts term loan B to $500 million, widens pricing
By Sara Rosenberg
New York, Dec. 18 – Quad/Graphics Inc. downsized its seven-year term loan B to $500 million from $700 million and revised price talk to a range of Libor plus 500 basis points to 525 bps from a range of Libor plus 425 bps to 450 bps, according to a market source.
Additionally, the original issue discount on the term loan B widened to 97 from 99, the 101 soft call protection was extended to one year from six months and changes were made to documentation, the source said.
The term loan B still has a 0% Libor floor.
The company also upsized its delayed-draw term loan A to $825 million from $625 million.
Along with the term loans, the company’s $2,125,000,000 of credit facilities (B2/BB-) include an $800 million revolver.
J.P. Morgan Securities LLC is the lead bank on the deal.
The credit facilities are being done in connection with the company’s all-stock acquisition of LSC Communications Inc. and will be used to help refinance Quad’s existing credit facility and LSC’s outstanding debt.
Under the agreement, LSC shareholders will receive 0.625 of a share of Quad class A common stock for each LSC share they own. The transaction is valued at about $1.4 billion, including the refinancing of LSC’s debt.
As of Sept. 30, the combined company would have had annual revenue of around $8 billion.
Closing is expected in mid-2019, subject to approval by Quad and LSC Communications shareholders, regulatory approval and other customary closing conditions. The transaction is not contingent on financing.
Quad is a Sussex, Wis.-based marketing solutions provider. LSC is a Chicago-based print and digital media solutions provider.
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