Jostens Intermediate Holding Corp. is in the market to cut the spread on its credit in what could be the fastest return ever for a repricing. The bank loan was put in place Oct. 4 to back a recap of Jostens, Von Hoffman Corp. and Arcade Marketing by Kohlberg Kravis Roberts & Co. and DLJ Merchant Banking Partners (LMW, 9/13). "That's got to be a record in terms of timing from when the deal closed," a loan investor said. "It's amazing how fast these things are repricing."
The company is looking to cut the spread on the "B" loan by 50 basis points to LIBOR plus 2%. The credit comprises a $250 million revolver, a $150 million "A" loan and a $870 million "B" loan. The entire credit is currently priced at LIBOR plus 2 1/2%. The pro rata originally went out to investors at that spread, but the "B" loan was flexed down from LIBOR plus 2 3/4% during syndication (9/27).
Credit Suisse First Boston is the lead and administrative agent on the credit. It could not be determined if CSFB is leading the repricing. Other lenders on the original credit include Banc of America Securities, Deutsche Bank, HypoVereinsbank, Calyon, CIT Lending Services Corp., Commerzbank, Erste Bank, GE Capital, ING Capital, Mizuho Corporate Bank, National City Bank, Sumitomo Mitsui Banking Corp. and The Royal Bank of Scotland. CSFB bankers did not return calls.