Digital Room updates first- and second-lien term loan pricing

By Sara Rosenberg

New York, May 10 – Digital Room Holdings Inc. set pricing on its $280 million seven-year first-lien term loan (B2/B-) at Libor plus 500 basis points, the high end of the Libor plus 475 bps to 500 bps talk, and on its $85 million eight-year second-lien term loan (Caa2/CCC) at Libor plus 900 bps, the wide end of the Libor plus 875 bps to 900 bps talk, according to a market source.

Also, the original issue discount on the first-lien term loan firmed at 98.5, the wide end of the 98.5 to 99 talk, and the 101 soft call protection was extended to one year from six months, the source said.

The first-lien term loan still has a 0% Libor floor, and the second-lien term loan still has a 0% Libor floor, a discount of 98 and hard 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 (B2/B-).

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.

Proceeds will be used for a dividend recapitalization.

H.I.G. Capital is the sponsor.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.