Goldman Sachs last week rolled out a 50 basis point cut on the $106.8 million term loan of American Achievement Corp. Pricing is being taken down to LIBOR plus 1 3/4% from LIBOR plus 2 1/4%. The financing also consists of a $40 million revolver, with pricing based on a leveraged-based grid. It is currently sitting at LIBOR plus 2 1/4%. Fenway Partners is the company's sponsor.
In March, Moody's Investors Service upgraded AAC Group Holding Corp.'s corporate family rating to B1 from B2 and upgraded AAC's senior secured credit facilities to Ba3 from B1 and its $150 million of senior subordinated notes to B2 from B3. The ratings agency says the upgrade reflects a reduction in the balance of the term loan, which declined to about $123 million as of February 2006 from $155 million when it was issued in 2004. The agency also anticipates that free cash flow in 2006, along with about $7 million in proceeds from the sale of preferred stock should result in a further reduction of the term loan.
Based in Austin, Texas, AAC sells class rings, graduation products and other personalized jewelry. Its brands include: Balfour, ArtCarved, Keepsake, Taylor Publishing and Who's Who, among others. Fenway bought the company from Castle Harlan in March 2004, supported by a financing from Goldman and Deutsche Bank (LMW, 5/5/2004). AAC was formed through Castle Harlan's acquisition of two class ring businesses, the ArtCarved division of CJC Holdings and the L.G. Balfour subsidiary of Town & Country Corp., in December 1996 (1/30/2004). Officials at Fenway and AAC could not be reached.