Digital Room wraps $171 million term loan at Libor plus 500 bps

By Sara Rosenberg

New York, Feb. 8 – Digital Room Holdings Inc. recently wrapped syndication of a $171 million first-lien term loan (B2/B-) at pricing of Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The first-lien term loan has 101 soft call protection for six months and a total net leverage covenant, the source said.

During syndication, pricing on the first-lien term loan was increased from Libor plus 475 bps and the MFN sunset was removed.

The company’s $253 million of credit facilities also include a $25 million revolver (B2/B-) and a $57 million pre-placed second-lien term loan (Caa2/CCC).

BNP Paribas Securities Corp. is the lead bank on the deal that allocated on Wednesday.

Proceeds are being used to help fund the buyout of the company by H.I.G. Capital from Insight Venture Partners.

Digital Room is an e-commerce provider in the online short-run print market.

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