The deal backing the leveraged buyout of Deluxe Film by MacAndrews & Forbes Holdings from The Rank Group was reworked last week. The five-year revolver was increased from $125 million to $150 million, raising the total value of the deal to $758 million. Additionally, pricing on the revolver and $458 million term loan "B" dropped from the LIBOR plus 4-4 1/4% range down to LIBOR plus 3 3/4%. Credit Suisse First Boston and Bear Stearns are leading the deal. A $150 million second-lien term loan priced at LIBOR plus 8 1/4%, was marketed before the holidays and not available to investors this go-around (CIN, 1/9).
Deluxe Film is the world's largest distributor of trailer and release prints for the motion picture industry as well as the industry's biggest processor of 35 mm film. Officials at Bear Stearns and CSFB declined to comment. Calls to Deluxe and MacAndrews & Forbes were not returned.