A $217 million deal backing Recycled Paper Greetings' leveraged buyout by Monitor Clipper Partners is making the rounds. The deal, led by Credit Suisse First Boston, comprises a five-year, $20 million revolver; a six-year, $110 million term loan "B" and a seven-year, $87 million second-lien term loan. Pricing on the revolver and "B" loan is LIBOR plus 3%. Pricing on the second lien is LIBOR plus 7%.
Standard & Poor's assigned a B rating to the revolver and term loan and a CCC+ to the second lien. In its report, S&P said the ratings reflect the company's leveraged financial profile, narrow product focus and small size. It expects RPG to reduce leverage to less than five times by the end of the 2007 fiscal year. Calls to the company and the private equity group were not returned.