Syndication launched last week for a $195 million facility backing Fenway Partners' $410 million acquisition of American Achievement Corp. (AAC) from Castle Harlan. The facility comprises a six-year, $40 million revolver and seven-year, $155 million term loan, bankers said. Goldman Sachs and Deutsche Bank lead the facility. Price talk could not be determined.
Proceeds of the facility will be used along with $150 million of senior subordinated notes and $119 million from Fenway, to fund the acquisition. In addition, the proceeds will be used to repay approximately $230 million of existing debt. The purchase price represents about 7.5 times adjusted EBITDA. Debt-to-EBITDA will increase from 4.2 times at Aug. 25, 2003 to 5.9 times on a pro forma basis using the LTM EBITDA as of Nov. 30, 2003. AAC manufactures class rings and yearbooks through its subsidiary Commemorative Brands.Sherice Bench, AAC's cfo, could not be reached by press time.