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Goldman Sachs Leads Day Funding

27 Oct 2005

Day International Group will receive $665 million from a Goldman Sachs-led deal to recapitalize the company and pay related fees.

Day International Group will receive $665 million from a Goldman Sachs-led deal to recapitalize the company and pay related fees. The loans are made up of a $275 million first lien, consisting of a six-year, $25 million revolver and a seven-year, $250 million term loan "B." Pricing on the first lien is LIBOR plus 21/2%. It also includes an eight-year, $140 million second lien. Pricing has not yet been discussed on the second lien. GSC Partners and SG Capital Partners are majority owners. Day is based in Dayton, Ohio, and designs, produces and markets engineered consumable rubber products for the printing industry.

Moody's assigned a B1 rating to the first lien and a B2 rating to the second lien. The agency says in its report that the ratings are constrained by the company's high financial leverage at 141% of book capitalization. However, it anticipates Day will be able to sustain or improve its free cash flow and move toward debt reduction.

Dennis Wolters, Day's president, ceo and director, could not be reached. Calls to GSC and SG were not returned.

27 Oct 2005