The $1.8 billion term loan "B" for Clarke American Checks broke for trading last Monday around par-par 1/4 and continued to trade in that context, according to a dealer. Led by Credit Suisse and Bear Stearns, the deal comprises a six-year, $100 million revolver and the seven-year term loan, both priced at LIBOR plus 2 1/2%.
The financing is being used by M&F Worldwide, the parent company of Clarke American, to acquire the John H. Harland Company for approximately $1.7 billion. Atlanta-based Harland is a provider of printed products and software and related services for the financial institution market. Calls to a company spokeswoman were not returned.
M&F tapped Bear Stearns and JPMorgan in November 2005 for a $125 million credit facility to back its $800 million acquisition of Clarke American from Honeywell (CIN, 11/21/2005). The deal comprised a $15 million revolver and a $110 million term loan "B" with tranches priced at LIBOR plus 1 3/4%.