Southern Graphics discloses talk on $680 million in term loans

By Sara Rosenberg

New York, Nov. 9 – Southern Graphics Inc. released price talk on its $680 million in term loans in connection with its bank meeting on Thursday, according to a market source.

The $480 million five-year covenant-light first-lien term loan and $80 million covenant-light first-lien delayed-draw term loan are talked at Libor plus 350 basis points with a 0% Libor floor and an original issue discount of 99.5, and the $120 million six-year covenant-light second-lien term loan is talked at Libor plus 750 bps with a 0% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $755 million of credit facilities also provide for a $75 million revolver.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the lead banks on the deal.

Commitments are due at noon ET on Nov. 21, the source added.

Proceeds will be used to refinance existing debt.

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

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