Southern Graphics shops $574 million term B at Libor plus 300-325 bps

By Sara Rosenberg

New York, June 1 – Southern Graphics Inc. is in market with a $574 million covenant-light term loan B (B1/B) due Dec. 31, 2022 that is talked at Libor plus 300 basis points to 325 bps with a 25 bps step-down when net first-lien leverage is less than 3.75 times, a 0% Libor floor and a par issue price, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are the lead arrangers on the deal that launched with a call late Thursday afternoon.

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

Proceeds will be used to refinance an existing term loan B priced at Libor plus 350 bps with a 25 bps step-down when net first-lien leverage is less than 3.75 times and a 0% 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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