Shutterfly reveals talk on $500 million credit facilities with launch

By Sara Rosenberg

New York, Aug. 1 – Shutterfly Inc. disclosed price talk on its $500 million of senior secured credit facilities in connection with its lenders’ presentation on Tuesday, according to a market source.

The $200 million five-year revolver is talked at Libor plus 175 basis points with 0% Libor floor, and talk on the $300 million delayed-draw seven-year covenant-light term loan B is Libor plus 225 bps to 250 bps with a 0% Libor floor and an original issue discount of 99.5, the source said.

Included in the term loan is 101 soft call protection for six months, a ticking fee of half the margin from days 46 to 90 and the full margin thereafter, and amortization of 1% per annum.

The revolver has maximum net secured leverage ratio and minimum interest coverage ratio covenants.

Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp., MUFG, U.S. Bank and Wells Fargo Securities LLC are the joint lead arrangers and bookrunners on the deal.

Commitments are due on Aug. 10, the source added.

Proceeds will be used for general corporate purposes including to refinance existing $300 million convertible notes due May 2018.

Shutterfly is a Redwood City, Calif.-based online retailer and manufacturer of high-quality personalized products and services.

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