Checkpoint Systems gets new $125 million revolving credit facility

By Sara Rosenberg

New York, May 5 - Checkpoint Systems Inc. closed on a new $125 million three-year senior secured revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Wachovia and RBS Securities acted as the joint lead arrangers on the deal that was completed on April 30, with Wachovia the administrative agent and Citizens Bank of Pennsylvania the syndication agent.

Pricing on the revolver can range from Libor plus 250 basis points to 375 bps and the unused fee can range from 30 bps to 75 bps, based on leverage.

Covenants include a maximum total leverage ratio and a maximum fixed-charge coverage ratio.

There is a $50 million accordion feature.

Proceeds were used to replace the company's previous revolver.

At close, $109.4 million was drawn under the new facility.

Checkpoint Systems is a Thorofare, N.J.-based manufacturer and provider of end-to-end shrink management, supply chain visibility and labeling services to the retail and apparel industry.

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