Digital Room reveals first- and second-lien term loan price talk

By Sara Rosenberg

New York, April 25 – Digital Room Holdings Inc. released price talk on its $280 million seven-year first-lien term loan and $85 million eight-year second-lien term loan with its bank meeting on Thursday, according to a market source.

Price talk on the first-lien term loan is Libor plus 475 basis points to 500 bps with a 0% Libor floor and an original issue discount of 98.5 to 99, and talk on the second-lien term loan is Libor plus 875 bps to 900 bps with a 0% Libor floor and a discount of 98, the source said.

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

The company’s $395 million of credit facilities also include a $30 million revolver.

The deal does include a covenant.

KKR Capital Markets, BNP Paribas Securities Corp. and Citigroup Global Markets Inc. are the lead banks on the deal.

Commitments are due on May 9, the source added.

Proceeds will be used for a dividend recapitalization.

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

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