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Shutterfly trims term B to $1 billion, flexes to Libor plus 550 bps
By Sara Rosenberg
New York, Sept. 20 – Shutterfly Inc. downsized its seven-year first-lien term loan B to $1 billion from $1.285 billion and increased pricing to Libor plus 550 basis points from Libor plus 525 bps, according to a market source.
Also, the original issue discount on the term loan was revised to 97 from talk in the range of 98 to 99 and amortization was changed to 6.5% per annum from 5% per annum, the source said.
The term loan still has a 0% Libor floor.
The company’s now $1.3 billion of senior secured credit facilities (B1/B), down from $1.585 billion, also include a $300 million revolver.
Barclays, Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBC Capital Markets LLC, Mizuho and UBS Investment Bank are the bookrunners on the deal.
Commitments are due at 5 p.m. ET on Monday, extended from 5 p.m. ET on Friday, the source added.
Proceeds will be used to help fund the buyout by Apollo Global Management LLC of Shutterfly for $51.00 per share in cash, or an enterprise value of about $2.7 billion, and the buyout of Snapfish LLC. Shutterfly and Snapfish will then be merged into one company.
Other funds for the transaction will come from $785 million of senior secured notes, upsized from $500 million, and equity.
Closing is expected by early in the fourth quarter, subject to customary conditions, including approval by Shutterfly stockholders and regulatory approval.
Shutterfly is a Redwood City, Calif.-based retailer and manufacturing platform for personalized products and communications. Snapfish is a San Francisco-based internet-based retailer of photography products.
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