Fenway Partners opted for a Goldman Sachs-led bank and high-yield bond package to finance the approximately $410 million acquisition of American Achievement Corp. from Castle Harlan. Fenway had talked to several financing sources for the transaction, but Goldman came through with the best deal. "Goldman proposed a very attractive and an appropriately capitalized structure that was very compelling," explained Mac LaFollette, a managing director with Fenway Partners.
Goldman was able to execute a high quality distribution bringing in first-tier, blue chip names in both the bank and the bond transaction, LaFollette noted.
The debt includes a $195 million credit facility and a $150 million bond deal. The new loan comprises a $40 million revolver and $155 million term loan. Both tranches are priced against a grid tied to leverage, which currently sets pricing at LIBOR plus 2 1/2%. The notes have an eight-year tenor, a four-year non-call provision, and carry a coupon of 8 1/4%.
"American Achievement is a very well positioned company where there are significant operational opportunities that we identified through due diligence. We are working closely with the management team to realize those opportunities and to provide substantial returns to our limited partners," explained LaFollette. American Achievement is a manufacturer and distributor of yearbooks, graduation announcements, achievement publications and class rings.