Southern Graphics sets $397 million loan spread at Libor plus 325 bps

By Sara Rosenberg

New York, Nov. 13 - Southern Graphics Inc. firmed pricing on its $397 million first-lien covenant-light term loan due October 2019 at Libor plus 325 basis points, the tight end of the Libor plus 325 bps to 350 bps talk, according to a market source.

Also, a pricing step-down was added to Libor plus 300 bps at 2.8 times first-lien leverage, the source said.

As before, the loan has a 1% Libor floor, a par offer price and 101 soft call protection for six months.

Recommitments are due at noon ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to refinance an existing term loan that is priced at Libor plus 375 bps with a 1.25% Libor floor.

Southern Graphics is a Louisville, Ky.-based provider of design-to-print graphics services to the consumer products packaging industry.

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